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Coinbase Wins Trust Charter, Won’t Become A Bank

Coinbase gets federally approved trust charter but will not operate as a bank.

  • Coinbase received conditional approval from the U.S. Office of the Comptroller of the Currency to establish Coinbase National Trust Company.
  • The company clarified it will not operate as a commercial bank, take retail deposits, or engage in fractional reserve banking.
  • Conditional approval requires Coinbase to finalize governance, staffing, and operational readiness before launching the trust.

Coinbase announced Thursday it has received conditional approval from the U.S. Office of the Comptroller of the Currency to charter a national trust company. This move formally brings federal oversight to its custody and market infrastructure services, joining other crypto firms like Circle and Ripple. However, the company was quick to clarify its intentions in a blog post, stating, “Coinbase is not becoming a commercial bank. We will not be taking retail deposits. We will not be engaging in fractional reserve banking.”

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Consequently, the approval is conditional, requiring Coinbase to complete governance and staffing steps before launch. The company must also pass a pre-opening regulatory examination by the OCC. Meanwhile, debate over stablecoin deposit rewards continues in Washington, with crypto firms reportedly reviewing a new draft proposal.

COIN‘s stock edged 0.72% lower in afternoon trading amid broader market weakness. Retail sentiment on platforms like Stocktwits remained in ‘bearish’ territory over the past day. This development marks a significant step in Coinbase‘s regulatory journey without expanding into traditional banking.

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