Coinbase Pursues Federal Charter to Bridge Crypto and Traditional Finance

Coinbase, the largest U.S. cryptocurrency exchange by trading volume, has submitted an application for a National Trust Company Charter from the Office of the Comptroller of the Currency (OCC), marking a strategic move to expand its custody and payments services under federal oversightCoinbase Strengthens Commitment to Innovation and Oversight with National Trust Charter Application^[1]. The company emphasized that it has "no intention of becoming a bank," but seeks regulatory clarity to facilitate innovation in digital asset integration with traditional financeCoinbase Files for OCC Trust Charter, Says It Won’t Become a Bank^[2]. The charter would allow Coinbase to offer custody services for stablecoins, manage reserves, and streamline compliance for new offerings, aligning with its broader goal of bridging the crypto and traditional financial systemsCoinbase Strengthens Commitment to Innovation and Oversight with National Trust Charter Application^[1].

The application aligns with Coinbase's existing regulatory framework. Its custody division, Coinbase Custody Trust Company (CCTC), has operated under a New York Department of Financial Services (NYDFS) trust charter since 2015, a pioneering regulatory approval for a crypto firm in the U.S. The NYDFS's BitLicense framework has fostered operational maturity and institutional trust, which Coinbase cites as foundational to its pursuit of a federal charterCoinbase Strengthens Commitment to Innovation and Oversight with National Trust Charter Application^[1]. The company noted that approval of the OCC charter would enable it to launch products beyond custody, including payments and related services, under a unified federal regulatory structureCoinbase Files for OCC Trust Charter, Says It Won’t Become a Bank^[2].

The move reflects a broader industry trend. Other prominent crypto firms, including Circle, Ripple, and Paxos, have also applied for OCC trust charters this yearCoinbase Applies for OCC Charter to Scale Crypto Services^[4]. These charters, distinct from traditional banking licenses, grant entities authority to safeguard assets and manage stablecoin reserves but exclude lending, deposits, or FDIC insurance. For Coinbase, the charter could reduce reliance on partner banks and strengthen its position as the largest crypto custodian, managing $425 billion in assetsCoinbase Files for OCC Trust Charter, Says It Won’t Become a Bank^[2]. The company has partnered with institutions like Shopify, PNC, and JPMorgan to advance stablecoin adoption, particularly for USDC, the second-largest stablecoin by market capitalizationCoinbase Files for OCC Trust Charter, Says It Won’t Become a Bank^[2].

The application also occurs against a shifting regulatory landscape. In July 2025, President Donald Trump signed legislation placing stablecoin regulation under the OCC's jurisdiction, creating a federal framework for oversightCoinbase Files for OCC Trust Charter, Says It Won’t Become a Bank^[2]. Coinbase's VP of institutional product, Greg Tusar, stated that the charter would "streamline oversight for new offerings and enable continued innovation to integrate digital assets into traditional finance." However, the industry faces pushback from traditional banks, with critics arguing that trust charters could distort competition by allowing crypto firms to bypass certain congressional safeguardsCoinbase Applies for OCC Charter to Scale Crypto Services^[4].

Coinbase's application underscores the growing demand for federal regulatory clarity in the crypto sector. The company has long advocated for uniform rules and expressed confidence in the OCC's review process, pledging to collaborate with regulators and address public feedbackCoinbase Strengthens Commitment to Innovation and Oversight with National Trust Charter Application^[1]. If approved, the charter could set a precedent for how stablecoins and digital assets interact with the U.S. financial system, influencing broader institutional adoption. Meanwhile, the competition among crypto firms for OCC charters highlights the sector's push to establish legitimacy and operational resilience under federal guidelinesCoinbase Applies for OCC Charter to Scale Crypto Services^[4].