- Coinbase has applied for a National Trust Company Charter with the U.S. Office of the Comptroller of the Currency (OCC).
- Coinbase stated it does not plan to become a bank, but seeks to connect crypto services with traditional finance.
- Other crypto companies, such as Circle and Ripple Labs, have also recently applied for a similar national trust license.
- Former Coinbase staff and industry commentators note the charter would support direct services and clearer oversight.
Coinbase submitted an application for a National Trust Company Charter with the U.S. Office of the Comptroller of the Currency. The move comes as part of Coinbase’s plan to broaden its business operations and regulatory oversight in the United States.
In an official statement, Coinbase said it is taking this step to expand business capabilities and advance regulatory supervision. The company added this initiative is intended to support innovation and further the development of a modern financial system driven by digital assets. Coinbase emphasized it has no plans to operate as a bank.
“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,” the company explained in its announcement (link).
Former Coinbase employee Luke Youngblood, who helped develop the exchange’s staking rewards, said in a podcast that the license could allow Coinbase to provide direct account services. “The license would enable Coinbase to offer basically built-in on-ramp, off-ramp, and no longer have to use partner banks on-ramps, off-ramps,” Youngblood explained (link).
Approval of the charter could let Coinbase expand beyond its current cryptocurrency custody services to include payment tools and other offerings under clearer guidance from regulators. Political commentator Brendan Pedersen noted, “Trusts theoretically have more limitations than other types of banks when it comes to business activities, but the distinction has blurred over the years.” (link)
Recently, other digital asset firms have taken similar steps. On July 1, Circle, the issuer of the stablecoin USD Coin (USDC), applied to become a national trust bank in the U.S. Soon after, Ripple Labs also filed for the same license. Ripple Labs CEO Brad Garlinghouse said approval would be a significant milestone for trust in the stablecoin market.
Youngblood also mentioned that he has noticed improvements in the Coinbase app since leaving in 2022, stating, “You can really tell they’ve hired some top engineering talent.”
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