Getting Bank, Exchange, and Other TradFi Accounts

As legal persons, DAO LLCs are eligible to open bank, exchange, and other TradFi accounts, but it can be challenging for any Web3-related company to do so.

Whether a bank or other provider will open an account for a DAO LLC depends on many factors including:

• Whether the provider supports Marshall Islands companies (ask them before applying!)

• The membership and management structure of your DAO LLC, which is up to you and determined by how you write your Operating Agreement.

  • For example, some banks may not be OK with companies using a token to track membership, even though it's totally acceptable in the Marshall Islands.

• The citizenship and residency of the DAO LLC's beneficial owners and their ability to pass KYC.

  • Note that every provider defines beneficial ownership differently, and their definition may vary from MIDAO's definition.

• The DAO LLC's source and use of funds.

• Where the DAO LLC and its members physically operate, and whether an acceptable proof of address (usually a bank or utility statement) is available for those locations.

Read more about passing KYC/KYB as a Marshall Islands DAO LLC here.

Check out our recommended banks and other fintech providers here.

Many projects choose not to open a bank account at all, especially if they also have a DevCo, OpCo, or LabCo in a more traditional form (such as a Delaware C-Corp) that can conduct banking on behalf of the whole project.