Crypto Companies Get Federal Charters Without Traditional Banking Powers

The US Office of the Comptroller of the Currency (OCC) has approved several major crypto companies to operate as national trust banks, giving them a federal charter without the traditional banking functions. Circle, one of the largest stablecoin issuers, received final approval for its Circle National Trust on July 10.

The new national trust banks will focus on custody, fiduciary administration, and settlement services, rather than collecting deposits or making loans. This model fits well with digital assets, as institutions need a regulated entity to safeguard private keys and administer tokenized assets.

A total of 11 companies have received some form of OCC approval since December, including BitGo, Fidelity Digital Assets, Paxos, Ripple, and Coinbase. While most are still completing conditions required before opening, the approvals mark a significant shift in the regulatory landscape for crypto companies.