Coinbase Seeks National Trust Charter from OCC

Coinbase has announced its application for a national trust company charter from the Office of the Comptroller of the Currency (OCC), aiming for federal regulatory oversight and clarity.

This move is significant as it could enhance institutional trust in Coinbase, fostering innovation by integrating digital assets into traditional finance and furthering regulatory compliance.

The application for a national trust company charter by Coinbase represents a strategic move to centralize oversight and boost innovation. CEO Brian Armstrong and Vice President Greg Tusar are leading the initiative. Tusar emphasized the benefits of aligning with federal standards for security and innovation.

Greg Tusar, Vice President of Institutional Product, Coinbase, stated, “An OCC charter will streamline oversight for new offerings and enable continued innovation to integrate digital assets into traditional finance. We’re not the first crypto company to seek a federal charter and we won’t be the last.”

Coinbase intends to operate under a national license without becoming a bank, thus focusing on custody, payments, and stablecoin reserves. This stand aligns with the firm’s commitment to clear regulatory frameworks and customer trust. The decision follows the implementation of the U.S. stablecoin regulation law.

The move is set to influence the Bitcoin and Ethereum markets, crucial assets under Coinbase management, while potentially impacting stablecoins like USDC. The strategy may increase institutional trust and engagement with major asset managers.

Coinbase’s application aligns with an industry trend where crypto platforms seek federal charters after Anchorage Digital’s approval in 2021. Other firms like Ripple and Paxos also eye these charters, emphasizing a focus on regulated custody and payment services. These developments suggest that regulatory compliance could drive further institutional adoption of crypto assets.