US Regulator Opens Doors for Crypto Firms to Become National Trust Banks

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The US Office of the Comptroller of the Currency (OCC) has decided to play nice with crypto and approved five major firms to apply for national trust bank charters. Yes, the future of digital assets just got a little more… traditional.

The OCC, in its infinite wisdom, has granted a conditional green light to five companies, all of which have been knee-deep in digital assets. And what’s this? The crypto world is about to cozy up to the old guard of traditional finance, under the watchful eye of the federal government. The announcement came through on a regular Friday, because why not surprise everyone with a little regulatory drama?

Conditional Approvals Granted Under Rigorous Standards

The OCC has given a tentative nod to the conversion of state-level trust companies into federally chartered national trust banks. The lucky winners? BitGo, Fidelity, and Paxos. It’s like a crypto debutante ball, but with a lot more paperwork. Also approved are the new kids on the block: Circle and Ripple, who are eager to show the world they can build their own shiny national trust banks.

According to WSJ, BitGo-digital asset custodian extraordinaire-has received the conditional OCC approval to transform itself into a full-fledged bank. The final seal of approval would let it manage digital assets and non-deposit financial goodies. Time to get fancy.

– Wu Blockchain (@WuBlockchain)

The OCC assures us it used its usual, ironclad review process for these applications. No cutting corners here! Each application was examined under the same rigorous scrutiny as any other charter request. So, welcome these crypto firms to the league of about 60 national trust banks, all of which now have to behave themselves under OCC supervision. No pressure.

Related Reading: US Regulatory Clarity to Spark Bitcoin Boom, Says Hex Trust CEO | Live Bitcoin News

Jonathan V. Gould, the Comptroller of the Currency, had this to say about the new approvals: “New entrants are always great, because they give consumers more choice, more credit, and more things to buy with digital coins. It keeps the banking world exciting!”

The OCC’s blessing comes in two main flavors. Circle and Ripple get a golden ticket to establish brand-new national trust banks. Circle is planning to launch the First National Digital Currency Bank, N.A., which will primarily focus on managing reserves for its USDC stablecoin. Meanwhile, Ripple is cooking up Ripple National Trust Bank to handle its RLUSD stablecoin reserves. Crypto is taking its seat at the grown-up table!

Meanwhile, BitGo, Fidelity, and Paxos have been given the green light to transform their state-level trust companies into fully federalized national trust banks. Nothing like a little federalization to make things official, right?

Implications for Stablecoin Reserve Management

So, what does all this mean for the average crypto enthusiast? Well, these shiny new federal charters will allow the companies to manage assets and settle payments faster. But, sorry folks, traditional cash deposits and loans are still off the table. No bank loans for your favorite meme coins-at least not yet. The OCC has set a few conditions to make sure everyone plays nice.

This decision follows a series of regulatory shifts by the US administration and the OCC, clearly trying to make crypto feel more at home in the US financial system. The passage of the GENIUS Act, for example, helps stabilize things for stablecoins, so at least they’re not living in constant fear of getting audited.

The US already has over 1,000 national banks, handling around 67% of the nation’s banking activity. Together, they have more than $17 trillion in assets. But don’t worry, the OCC assures us that it’s using consistent risk management standards. So, the federal banking system can evolve just as fast as the finance world itself, keeping up with the times and, you know, making sure the modern economy doesn’t implode.

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2025-12-13 01:25