The U.S. Office of the Comptroller of the Currency (OCC) has granted conditional approval to five digital asset companies—Ripple, Circle, Fidelity Digital Assets, BitGo, and Paxos—to operate as federally chartered national trust banks. This decision paves the way for greater integration of cryptocurrencies into the traditional financial system by allowing these firms to transition from state-level trust charters to federal oversight, provided they meet OCC requirements. Once finalized, these institutions will join approximately sixty other national trust banks regulated by the OCC, authorized to offer fiduciary and custody services nationwide. Unlike conventional banks, trust banks cannot accept deposits or make loans but are permitted to safeguard and manage customers’ digital assets. Circle, which issues the $78 billion USDC stablecoin, stated that the charter will enhance reserve protections and regulatory oversight while enabling fiduciary digital asset custody for institutional clients. Paxos, known for PYUSD and the consortium-backed Global Dollar (USDG), views federal supervision as a means to increase transparency and trust in issuing, custody, trading, and settlement of digital assets for businesses. BitGo, headquartered in South Dakota, plans to expand nationwide services such as trading, staking, stablecoins, and treasury management under the federal charter; the company has also filed for a public offering with significant revenue growth in the past year. This approval marks a significant step toward federal regulation of digital assets. Previously, Anchorage Digital became the first federally chartered crypto bank in the U.S. Other firms, including Coinbase, Stripe-owned Brigit, and Crypto.com, have also applied for federal charters. OCC Comptroller Jonathan V. Gould emphasized that new entrants into federal banking benefit consumers, foster competition, and drive innovation. He added that the OCC will continue facilitating pathways for both traditional and innovative financial services to ensure the federal banking system aligns with financial progress and supports the modern economy.
Source: bitcoinmagazine
