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Coinbase Approved as Nationally Chartered Trust Bank by US OCC
Key points
- Coinbase approved as a nationally chartered trust bank by US OCC.
- New status permits payments and custody services, expands stablecoin business.
- Cannot accept deposits or issue loans under this charter.
- Coinbase joins Circle and Ripple with similar trust charters.
New Trust Bank Status Granted
Coinbase has secured approval from the US Office of the Comptroller of Currency (OCC) to operate as a nationally chartered trust bank. This regulatory designation marks a significant step for the cryptocurrency exchange in expanding its financial services offerings within the United States.
Expanded Services and Limitations
With the new trust bank status, Coinbase is authorized to conduct payment processing and custody services for digital assets. This also enables the company to further develop its stablecoin business. However, the charter is limited; Coinbase will not be able to accept traditional customer deposits or issue loans, functions typically associated with full commercial banks.
Industry Context and Precedent
Coinbase joins a select group of digital asset companies, including Circle Internet Group and Ripple, that have successfully obtained trust charters. Other firms like Block and Wise have also sought similar designations. Coinbase states it is the world's largest crypto custodian and has previously collaborated with Citigroup for stablecoin-to-currency conversions.
Regulatory History
Coinbase has faced regulatory challenges in the past. In 2022 and 2023, the SEC filed lawsuits against the company concerning the alleged illegal sale of unregistered securities and violations of securities laws. Additionally, in 2023, Coinbase settled with New York State for $100 million over issues related to money transmitting and other irregularities. The company also experienced a hack last year where perpetrators demanded $20 million.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Coinbase received approval from the US Office of the Comptroller of Currency to operate as a nationally chartered trust bank. This designation allows Coinbase to expand its payment and custody services, including its stablecoin business, though it cannot handle regular deposits or grant loans.