Coinbase Wins Conditional Approval for U.S. Trust Charter
According to Coinbase and OCC-related reporting, the conditional approval could let Coinbase expand from digital asset custody into payments infrastructure, while banking trade groups challenge the charter on regulatory and consumer-risk grounds.
Coinbase received conditional approval from the U.S. Office of the Comptroller of the Currency to establish Coinbase National Trust Company, a step that would place it among a small group of digital-asset firms to receive similar tentative approval. According to Coinbase chief legal officer Paul Grewal, if the charter is finalized, Coinbase could expand beyond custody into payment products and other infrastructure under federal supervision. The move has drawn opposition from the Independent Community Bankers of America, which called the approval a "grave mistake" and argued Coinbase’s application has shortcomings related to risk controls, profitability, and resolution planning. The group also urged the OCC to withdraw or revise its national trust bank rule for uninsured institutions conducting non-fiduciary crypto-related business. Coinbase shares were trading at $171 at the time of writing, little changed from the prior session.
- Trust charter: A regulatory authorization that allows a firm to provide custody or fiduciary services under an approved legal framework.
- Digital asset custody: The safekeeping of cryptocurrencies and related private keys for clients using regulated operational, legal, and security controls.
- Fractional reserve banking: A banking model in which institutions keep only part of customer deposits in reserve and lend out the rest.