Key Points
- Coinbase is seeking a national trust company charter from the OCC as part of its service expansion.
- Other crypto firms like Circle, Ripple, Paxos, and BitGo have also applied for the same charter.
American cryptocurrency exchange, Coinbase, is working towards acquiring a national trust company charter from the Office of the Comptroller of the Currency (OCC). This move is part of its service expansion efforts.
Coinbase joins a growing list of digital asset service providers that have sought the same charter in recent times. The exchange believes that acquiring this charter will significantly transform its operations.
Coinbase’s Pursuit of OCC Federal Charter
On October 3, Coinbase announced its pursuit of the United States OCC Federal Charter. They believe this is a crucial step towards scaling their business.
The charter brings an added layer of regulatory oversight that extends beyond the crypto exchange’s current framework. This is expected to foster more innovation and growth in the broader financial sector.
Greg Tusar, Coinbase’s vice president of institutional product, confirmed that Coinbase is not the first crypto firm to seek the OCC Federal Charter. He believes that its approval will facilitate oversight for new offerings and encourage continued innovation to integrate digital assets into traditional finance.
Furthermore, Tusar clarified that Coinbase has no intentions of becoming a bank. The crypto exchange is merely focused on having clear rules and the trust of regulators and customers. In his view, possessing these attributes provides the exchange with the confidence to innovate securely while ensuring proper oversight.
Other Crypto Firms Seeking OCC Federal Charter
Other crypto firms that have applied for the Federal Charter include Circle, Ripple, Paxos, and BitGo. In 2021, Paxos received preliminary approval, joining Anchorage and Protego, both of which held a federal banking charter at that time.
Ripple, a San Francisco-based blockchain payment firm, officially applied for the license, along with a Federal Reserve Master Account, around July. The firm’s goal is to establish regulatory trust and integrate directly with the US banking system.
Around the same time, Circle also sought the charter. If approved, the stablecoin issuer would be known as First National Digital Currency Bank, N.A. The federal charter will enable Circle to manage USDC reserves and custody of tokenized financial assets.
Coinbase reaffirms the need for uniform national rules to protect every consumer as the market continues to evolve, hence their application for an OCC national trust charter and the federal regulatory oversight and clarity it provides.
