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The Rush Is On For Stablecoin Issuers Seeking Federal Banking Charters

By  |  October 15, 2025

Stablecoin issuers and fintechs are rushing to capitalize on the GENIUS Act. Payments provider Stripe on Tuesday submitted an application to the Office of the Comptroller of the Currency (OCC) to organize its stablecoin infrastructure arm, Bridge, as a national trust bank, co-founder Zach Abrams announced on X.  If approved, it would allow Bridge “to operate under a unified federal framework consistent with the GENIUS Act,” Abrams said.

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    According to Decrypt, the proposed Bridge National Trust Bank would enable Stripe to issue, redeem, and custody stablecoins within a federally regulated framework, instead of going through state-level money-transmitter licenses.

    “This regulatory infrastructure will enable us to tokenize trillions of dollars,” Abrams wrote.

    Stripe acquired Bridge in October 2024 through a $1.1 billion deal as part of its broader plan to integrate blockchain-based payments into its global merchant network.

    With its application to OCC, Stripe joins the rush of fintechs seeking federal bank charters in the wake of the GENIUS Act. In July, stablecoin giant Circle filed its own application for a federal charter, per Decrypt, followed quickly by Ripple and month later by Paxos.

    The Guiding and Establishing National Innovation for U.S. Stablecoins Act Act (GENIUS) Act was passed by Congress in July and quickly signed by President Trump. The law created a new federal charter category for “permitted payment stablecoin issuers,” along with a regulatory framework they must follow. Issuers must maintain 100% reserve backing in U.S. dollars or short-term Treasuries and make monthly, public disclosures of the composition of those reserves.

    Issuers must also prioritize stablecoin holders’ claims over all other creditors in the event of insolvency.

    Read more: Euro Zone Weighs Support for Euro-Backed Stablecoins Amid U.S. Dominance

    The Trump administration has championed efforts to integrate crypto tokens with the broader financial sector. It has pushed the SEC and CFTC to speed up development of a regulatory framework that will allow for new, crypto-based financial services and to permit traditional banks and other regulated institutions to handle digital currencies and transactions. The crypto industry has also emerged as a major political force, directing tens of millions of dollars into congressional and state legislative campaigns over the past two election cycles.

    The GENIUS Act represents a “major inflection point for the stablecoin sector,” showing “the U.S. is finally moving toward federal recognition of digital dollar infrastructure,” a representative for crypto-exchange aggregator Astros, told Decrypt. “A federally chartered stablecoin bank under the GENIUS Act will set a precedent for interoperability between on-chain liquidity and off-chain oversight.”

    A second major piece of crypto legislation, the Clarity Act, passed the House in May but ran into opposition in the Senate before Congress’ summer recess and the current government shutdown brought legislative activity to a halt. The measure is aimed at establishing clear lines oversight and enforcement jurisdictions among federal regulators for trading other types of digital assets, such as crypto investment contracts and derivatives.

    While the Clarity Act passed the House with broad bipartisan support opposition to it in the Senate has come largely from Democrats. With partisan divisions further hardened by the government shutdown and an election year looming, finding cross-aisle consensus for passage could be challenging.