Crypto Companies Receive National Bank Charters Without Traditional Banking Powers
America is creating a new class of institutions that combines elements of banks and crypto companies without being traditional banks. These entities are known as national trust banks, which have been around for some time but are now being utilized by major players in the crypto space.
The Office of the Comptroller of the Currency (OCC) has approved several applications from prominent crypto companies to become national trust banks, including Circle, Ripple, BitGo, Fidelity Digital Assets, Paxos, Bridge, Crypto.com, Coinbase, Morgan Stanley, and World Liberty Financial. These institutions will not offer traditional banking services like checking accounts or mortgages but rather provide custody, fiduciary administration, stablecoin reserves, and settlement.
The OCC's decision allows these companies to operate with the regulatory oversight of a national bank without having to collect deposits or extend loans, which are core functions of traditional banks. This new category of institutions is specifically tailored for digital assets and provides a framework for issuers, custodians, and financial groups to operate under federal supervision.
Circle National Trust, a subsidiary of Circle, has already received final approval from the OCC and will provide fiduciary digital-asset custody for Circle and its affiliates at launch. Future capabilities may include custody for selected institutions and management of USDC reserves.