OCC Grants Preliminary Approval for Crypto Trust Bank Charters
Major cryptocurrency firms secured conditional approvals from a key U.S. regulator to operate as national trust banks. The Office of the Comptroller of the Currency greenlit applications from Circle and Ripple for new charters while allowing BitGo, Paxos, and Fidelity Digital Assets to convert existing state charters to national ones. This move enables nationwide operations focused on digital asset custody and related services.
Circle, issuer of the USDC stablecoin, and Ripple, known for its XRP ledger and cross-border payment solutions, received approvals for de novo national trust banks. BitGo, Paxos, and Fidelity transition their state-level trust companies to federal oversight under the OCC. National charters permit activities across state lines without separate approvals in each jurisdiction.
Trust banks specialize in fiduciary services including asset safekeeping, administration, and transfers without full commercial banking powers like lending or deposit-taking. Crypto firms pursue these charters to provide regulated custody for digital assets, addressing institutional demand for secure storage outside exchanges. The approvals impose conditions related to capital requirements, risk management, and compliance frameworks.
This development follows years of regulatory scrutiny on crypto custody and banking integration. Previous OCC guidance affirmed that national banks could hold cryptographic keys for customers. Industry executives view the charters as a bridge between traditional finance and digital assets, potentially attracting more institutional participation.
The Bank Policy Institute raised concerns over unresolved questions on tailored supervisory requirements for these entities. Regulators emphasized that approvals remain conditional pending fulfillment of specific obligations. Approved firms must demonstrate robust anti-money laundering programs and operational resilience.
Crypto custody volumes have grown significantly, with institutions seeking federally regulated options amid exchange failures. National trust charters offer a standardized framework under OCC supervision. Firms like Anchorage Digital previously obtained similar approvals in earlier years.
This wave of approvals reflects evolving regulatory approaches to digital assets under current administration priorities. It expands options for stablecoin issuers and custodians to operate under banking oversight. Observers anticipate further applications from other crypto-native companies.
The decisions highlight efforts to integrate blockchain technologies into regulated financial services. Approved entities gain advantages in serving institutional clients requiring compliant custody solutions. Industry groups continue advocating for clear guidelines on permissible activities.
Conditional approvals mark an initial step, with final charters dependent on meeting outlined conditions. This progression supports broader adoption of digital assets in traditional portfolios. Regulators balance innovation with safeguards against systemic risks.
