Quick overview

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Coinbase has joined Ripple and Circle in seeking federal oversight to expand their digital asset services by applying for a National Trust Company Charter from the US Office of the Comptroller of the Currency (OCC).

The company, which operates one of the largest cryptocurrency exchanges, is currently governed by a patchwork of state licenses, including the BitLicense issued by the New York Department of Financial Services (NYDFS).

 

Adding a national OCC charter to its existing New York licenses would strengthen Coinbase’s custody business and create new product opportunities, such as payments and related services. The company emphasized its aim to bridge the gap between the crypto economy and traditional finance by stating, “Coinbase has no intention of becoming a bank.”

The NYDFS BitLicense framework has regulated cryptocurrency businesses since 2015. Coinbase views the OCC charter as a way to promote innovation in integrating traditional finance and to simplify oversight for new products.

Coinbase announced it will work with OCC officials during the review process and respond to public comments. “We’re not the first crypto company to seek a federal charter, and we won’t be the last,” Coinbase said.

Circle, Ripple, BitGo, and Paxos are also pursuing bank charters in light of regulatory changes and increasing opportunities for deeper integration with traditional finance. The only cryptocurrency firm to have received a national trust charter from the OCC is Anchorage Digital. CEO Nathan McCauley noted that obtaining the license involved close regulatory engagement and significant compliance costs..