Coinbase has taken a significant step by applying for a National Trust Company Charter with the US Office of the Comptroller of the Currency. This application mainly targets the Coinbase Custody service; however, it also has broader implications. If successful, the charter would facilitate Coinbase's expansion into additional financial services such as payments, all while operating under federal supervision.
Coinbase is part of a growing number of cryptocurrency firms seeking similar oversight, alongside other notable players like Ripple and Circle. Currently, Coinbase operates under a series of state licenses, notably the New York Department of Financial Services BitLicense, which adds layers of regulatory compliance and oversight to its operations.
By obtaining a national charter from the OCC, Coinbase aims to enhance its custody services and unlock potential for new offerings, including payment services. The firm clarifies that it does not intend to become a traditional bank, rather it seeks to bridge the crypto economy with established financial systems, ensuring a seamless integration that benefits both sectors.
The NYDFS BitLicense has been in effect since 2015, providing a framework for operational governance of cryptocurrency companies. Coinbase perceives the national charter as a means to streamline oversight for its evolving range of products while continuing to drive innovation in the integration of traditional finance with digital assets.
Coinbase acknowledges that it is not the first cryptocurrency company to pursue a federal charter and understands the importance of engaging with OCC staff throughout the evaluation process, promising to address any feedback received.
In addition to Coinbase, companies such as Circle, Ripple, BitGo, and Paxos are also in pursuit of bank charters. This movement aligns with increasing regulatory changes and the quest for deeper penetration into traditional finance.
Notably, Anchorage Digital remains the only cryptocurrency firm that has successfully obtained a national trust charter from the OCC. Its CEO, Nathan McCauley, has stated that attaining this license required substantial compliance expenditures and close communication with regulatory bodies, highlighting the rigorous process involved.