OCC Allows US Banks To Offer Crypto Custody Services

The Office of the Comptroller of the Currency (OCC) has confirmed that national banks and federal savings associations in the United States can provide crypto custody and execution services to their customers. This announcement clarifies that these institutions can buy and sell crypto assets at the direction of their customers, and they can also outsource these services to third parties. The OCC's guidance reaffirms that crypto custody is considered a modern form of traditional bank custody services, allowing banks to offer a range of related services, including asset settlement, trade execution, recordkeeping, valuation, and tax reporting. These activities must comply with applicable laws and customer agreements.

Banks are permitted to work with sub-custodians to store and manage crypto assets, but they must implement strong risk management practices. Third-party providers must adhere to proper controls to protect customer assets, and banks remain responsible for the oversight of all outsourced services. If a bank acts in a fiduciary capacity, it must follow federal fiduciary rules. All crypto-related activities must be conducted in a safe, sound, and lawful manner, whether performed directly by the bank or through third-party services.

This clarification from the OCC provides banks with a clear legal basis to offer digital asset services within a regulated framework. Previously, there was uncertainty about whether banks could actively buy or sell crypto assets held in custody based on customer instructions, even though custody services were permitted. This new guidance increases confidence in crypto services provided by regulated financial institutions and allows banks to meet customer demand for crypto services without having to build everything in-house. By confirming this authority, the OCC supports responsible crypto adoption in traditional banking, reinforcing the need for customer protection and oversight. Banks now have a pathway to expand their crypto services, provided they manage partners and risks effectively.