The cryptocurrency exchange said in a Thursday (April 2) blog post that it has received conditional approval from the Office of the Comptroller of the Currency (OCC) to charter Coinbase National Trust Company.
This achievement marks “a significant milestone in Coinbase’s long pursuit of regulatory clarity” following years of investment in compliance and engagement with regulators, Greg Tusar, co-CEO for Coinbase Institutional, said in the post.
Coinbase will continue to work with OCC staff to gain approval, according to the post.
The company also will continue to operate under the oversight of the New York Department of Financial Services (NYDFS). It has had an NYDFS Bitlicense since 2015, per the post.
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As it seeks to become a national trust company, Coinbase is not becoming a commercial bank, will not be taking retail deposits and will not be engaging in fractional reserve banking, Tusar said.
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“This charter is about bringing federal regulatory uniformity to the custody and market infrastructure business we have been building for years,” Tusar said in the post. “The OCC charter was designed precisely for this purpose — to provide clear oversight over assets in safekeeping — and that is exactly how we intend to use it.”
The conditional approval from the OCC positions Coinbase to build “the next chapter of finance” while giving regulatory confidence to the company’s partners and customers and the broader market, according to the post.
“Federal oversight through the OCC will bring consistency and uniformity to our custody business and create a foundation for new products — including payments and related services — that serve the institutions and individuals who rely on us,” Tusar said in the post.
Coinbase announced in October that it submitted an application to become a national trust company. The company said at the time in a press release: “We’re not the first crypto company to seek a federal charter and we won’t be the last. Achieving this milestone now will position Coinbase to succeed as the future of finance unfolds.”
PYMNTS reported in January that a growing number of FinTechs and cryptocurrency-focused firms are pursuing bank charters as they look to expand beyond niche services into core financial activities
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