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Major crypto exchange Coinbase said it has applied for a National Trust Company Charter from the Office of the Comptroller of the Currency (OCC) to expand upon its custody business, joining other crypto firms seeking to benefit from regulatory oversight and clarity at the federal level.
In a recent tweet, Coinbase made known this development, which it refers to as a significant step in expanding its business capabilities and regulatory oversight beyond the existing framework.
In an official blog post, Coinbase revealed that it has no intention of becoming a bank, and as it seeks a national charter, Coinbase Custody Trust Company (CCTC) and Coinbase will continue operating under the oversight of the NYDFS.
If approved, the charter would open up opportunities for Coinbase to launch new products beyond custody, including payments and related services, with the confidence of regulatory clarity, boosting broader institutional adoption.
On Friday, Coinbase announced a partnership with popular smartphone brand Samsung to bring crypto to more than 75 million Galaxy users.
Ripple, Paxos, Circle seeking charter licenses
Over the last few months, crypto firms, including Ripple, Paxos and Circle, have applied for charter licences with the Office of the Comptroller of the Currency (OCC).
In July, Ripple revealed it was applying for a national bank charter in the United States, following a similar move by stablecoin issuer Circle.
In August, stablecoin company Paxos said it had applied for a national trust charter, seeking to convert its New York Department of Financial Services trust charter into a national one under the Office of the Comptroller of the Currency.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team