Coinbase has applied for a National Trust Company Charter with the OCC to expand regulated services beyond custody, enabling integrated on-ramps, off-ramps, payments and clearer oversight while maintaining its non-bank status.
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Coinbase applied for a National Trust Company Charter with the OCC to bridge crypto and TradFi.
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Approval would let Coinbase offer custody plus payments and integrated on‑ramps/off‑ramps under clearer regulation.
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Several US crypto firms, including Circle and Ripple Labs, have also sought the trust charter this year.
Coinbase National Trust Charter: Coinbase seeks OCC approval to expand services under clearer oversight — read the implications and timeline.
What is Coinbase’s National Trust Company Charter application?
Coinbase’s National Trust Company Charter application to the Office of the Comptroller of the Currency (OCC) is a regulatory step to operate as a federally chartered trust entity, allowing the exchange to broaden services beyond custody while asserting it does not intend to become a bank. The filing targets clearer oversight for payments and integrated on‑/off‑ramp capabilities.
How would the charter change Coinbase’s services?
Approval would permit Coinbase to expand from pure custody into payments and related financial services under federal supervision. This can reduce reliance on third‑party partner banks for on‑ramps and off‑ramps, streamline customer flows, and create new product paths such as native fiat rails and payment settlements.
Coinbase said seeking the license is part of its broader effort to bridge the gap between crypto and traditional finance.
Coinbase has formally applied for a National Trust Company Charter with the OCC, joining other US crypto firms pursuing similar federal trust charters this year.
“Coinbase is taking a significant step in expanding our business capabilities and regulatory oversight beyond the existing framework, paving the way for innovation and growth in building a modern financial system powered by digital assets,” Coinbase said in a statement on Friday.
Why does Coinbase say the charter will “bridge the gap” with TradFi?
Coinbase frames the charter as part of a strategy to link the crypto economy with the traditional financial system. The firm emphasizes that clearer rules and federal oversight will support innovation while preserving customer trust and security.
Coinbase clarified: “Coinbase has no intention of becoming a bank. It is our firm belief that clear rules and the trust of our regulators and customers enable Coinbase to confidently innovate while ensuring proper oversight and security.”
What do industry insiders say about operational impact?
Luke Youngblood, who previously led Coinbase staking rewards, said the charter would enable Coinbase to “offer basically built‑in on‑ramp, off‑ramp, and no longer have to use partner banks on‑ramps, off‑ramps.”
Political commentator Brendan Pedersen noted that trusts can carry business limitations versus commercial banks, though that distinction has narrowed over time.
When did other companies file similar charter applications?
Several crypto firms have filed trust charter applications in the same period. Stablecoin issuer Circle submitted an application on July 1, and Ripple Labs filed shortly after. Ripple Labs CEO Brad Garlinghouse described approval as a potential benchmark for trust in the stablecoin market.
Frequently Asked Questions
Will Coinbase become a bank if the trust charter is approved?
No. Coinbase has explicitly stated it does not intend to become a bank. A National Trust Company Charter would provide federal oversight and enable broader services while remaining focused on crypto-native products.
How will customers benefit from the charter?
Customers could see faster, more integrated fiat on‑ramps and off‑ramps, potential new payment products, and clearer regulatory protections for custody and transactional services.
Does the charter change regulatory obligations?
Yes. A federal trust charter subjects the firm to OCC supervision, compliance requirements, and reporting structures different from non‑chartered crypto businesses. This can increase transparency and regulatory alignment.
Key Takeaways
- Regulatory move: Coinbase applied for a National Trust Company Charter with the OCC to operate under federal trust oversight.
- Service expansion: Approval could allow payments, integrated on‑ramps/off‑ramps, and expanded custody offerings.
- Industry context: Circle and Ripple Labs have pursued similar charters, signaling a broader industry push toward federally chartered trust structures.
Conclusion
The Coinbase National Trust Company Charter application is a strategic bid to bring regulated clarity to digital asset services while maintaining the company’s crypto‑native identity. If approved, the charter would open new product pathways and tighter oversight, shaping how major crypto firms interface with traditional finance. Monitor OCC review timelines and official filings for updates.
