Coinbase Applies for OCC Charter to Expand Payment Services
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Coinbase announced its application for a National Trust Company Charter from the U.S. Office of the Comptroller of the Currency (OCC). This strategic move aims to broaden Coinbase’s service offerings beyond its established custody business, enabling the company to venture into areas such as payments and related services, all under the assurance of federal regulatory oversight.
In a blog post, Greg Tusar, Coinbase’s Vice President of Institutional Product, emphasized that the company has “no intention of becoming a bank.” Instead, Coinbase seeks to operate within a clear regulatory framework that fosters innovation while ensuring proper oversight and security. The OCC charter would allow Coinbase to launch new products with confidence, facilitating broader institutional adoption of digital asset services.
Currently, Coinbase operates under the New York Department of Financial Services’ (NYDFS) BitLicense framework, which it has held since 2015. While this state-level regulation has provided a foundation for Coinbase’s operations, a federal charter would streamline oversight for new offerings and enable continued innovation to integrate digital assets into traditional finance.
This application aligns with a broader trend of cryptocurrency firms seeking federal charters to enhance their legitimacy and expand their service offerings. Companies like Circle, Ripple, and Paxos have also pursued national trust charters, reflecting a growing interest in establishing a more standardized regulatory environment for digital asset services.
The OCC’s trust charter authority has evolved to accommodate the unique aspects of digital asset businesses. Interpretive Letter 1176, issued in 2021, clarified the standards for chartering digital-asset trust banks, providing a framework for evaluating applications from firms like Coinbase.
If granted, the national trust charter would position Coinbase to play a pivotal role in the integration of digital assets into the traditional financial system, offering services that bridge the gap between crypto and conventional finance. The company’s commitment to operating within a well-defined regulatory structure underscores its dedication to fostering trust and stability in the evolving digital asset landscape.
As the OCC reviews Coinbase’s application, the outcome could set a precedent for the future of digital asset regulation, influencing how crypto firms navigate the intersection of innovation and compliance in the financial sector.
