Coinbase Seeks National Trust Charter to Expand Crypto Services
Coinbase, the leading US cryptocurrency exchange, has submitted an application for a National Trust Company Charter with the U.S. Office of the Comptroller of the Currency (OCC). This move aims to expand its regulated news operations and foster innovation within the digital asset space.
Coinbase's application comes as part of a broader industry trend towards federal regulation. The company seeks to expand beyond its current custody services to payments and related offerings, operating under its existing New York Department of Financial Services (NYDFS) framework. If approved, the new license would allow Coinbase to broaden its services nationwide.
Coinbase is not alone in this pursuit. Other prominent crypto companies, including Circle, Ripple, Paxos, and BitGo, have also submitted applications for a Trust Charter with the OCC. Circle, the issuer of the USDC stablecoin, plans to use the OCC charter to expand its payment and custody services. Ripple, meanwhile, is seeking the same license to back its new RLUSD stablecoin and cross-border settlement business. Paxos, a blockchain platform, has also applied to convert its NYDFS trust charter into an OCC national trust charter.
Coinbase's custody division, Coinbase Custody Trust Company (CCTC) and Coinbase Inc., has held a New York trust charter since 2015, preparing it for a national charter. Coinbase plans to work with OCC staff throughout the review process and respond to public or agency feedback. The company clarifies that it does not plan to become a traditional bank, instead aiming to operate under clear, consistent regulations while continuing to innovate in crypto.
Coinbase's application for a National Trust Company Charter is a significant step towards wider acceptance and regulation of the cryptocurrency industry. If successful, it will enable the company to expand its services and operate under consistent federal regulations. This move, along with similar applications from other crypto companies, signals a growing trend towards federal oversight in the digital asset space.
