Coinbase has received final approval from the Office of the Comptroller of the Currency (OCC) to charter Coinbase National Trust Company, the cryptocurrency exchange announced on Monday. The regulator approved the application last Friday, according to the company, granting it authority to operate under a federal framework rather than solely state-level oversight.
The charter allows Coinbase to expand its custody business for institutional clients. The firm stated it will not function as a commercial bank, meaning it will not accept retail deposits or engage in fractional reserve banking. This federal authorization follows conditional approval granted by the OCC in April, concluding a seven-month review process.
"Trusted custody is essential for bringing more of the financial system onchain," Coinbase CEO Brian Armstrong said in a post on social media Monday, describing the trust company as another step in building that foundation. Coinbase has offered regulated custody services since 2018 through a limited purpose trust charter issued by the New York Department of Financial Services.
Competitors Secure Similar Charters
Coinbase joins other major digital asset firms that have recently secured federal trust charters. Circle received final approval in July for a trust bank to manage reserves backing its USDC stablecoin. Ripple obtained similar final approval last month for a trust bank associated with its RLUSD stablecoin.
Other industry participants are pursuing comparable regulatory pathways. Jack Dorsey’s Block applied for a charter to custody Bitcoin in September, while Kraken parent Payward filed an application for a national trust bank charter in May. A trust company linked to World Liberty Financial won conditional approval in August for a charter tied to its USD1 stablecoin, Reuters reported.
Legal and Political Challenges
The OCC’s approach to granting charters to crypto firms has faced opposition from traditional banking groups and lawmakers. The Independent Community Bankers of America has sued the OCC in an effort to stop crypto firms from entering banking through what it describes as a side door.
Senator Elizabeth Warren (D-MA) has argued that the OCC’s crypto charter approvals, including Coinbase’s, are illegal. Despite these legal and political challenges, the regulator has continued to process applications, establishing a federal pathway for digital asset custody providers.
