Coinbase Applies for US Banking License, Joining Growing Pack of Crypto Firms – Decrypt

Coinbase, the largest cryptocurrency exchange in America, has recently submitted an application to the Office of the Comptroller of Currency (OCC) for a national trust charter, marking a significant move in the digital asset sector.

The publicly traded company announced this development on Friday, following the lead of stablecoin providers Circle and Paxos, as well as fintech company Ripple.

If granted, Coinbase indicated it would enhance its ability to quickly offer new products and services, further advancing “the integration of digital assets within traditional financial systems.” The national trust charter permits non-bank entities to manage their reserves and hold assets for institutional clients.

“Coinbase does not aim to become a bank,” the exchange clarified. “We are firm believers that having clear regulations and fostering trust with our regulators and clients enables us to innovate confidently while ensuring adequate oversight and security.”

“Upon approval, this charter would further enable Coinbase to introduce innovative solutions beyond custody services, encompassing payment systems and related offerings with assured regulatory guidance, thereby encouraging broader institutional uptake,” the company elaborated.

Coinbase has not yet responded to Decrypt‘s inquiries.

Anchorage Digital was the inaugural digital assets firm to obtain an OCC charter back in 2021. This year, stablecoin issuer Circle, responsible for the USDC stablecoin, and Paxos, known for the PYUSD and PAXG tokens, also submitted their applications. Ripple, the issuer of the RLUSD stablecoin, has filed for a charter as well.

Based in San Francisco, California, Coinbase is intensifying its efforts in the realm of traditional finance. In July, it inked a partnership with JPMorgan Chase, aiming to streamline the process for customers wishing to purchase cryptocurrencies.

Coinbase became publicly listed in 2021 and is engaged in a contract with the U.S. Marshals Service, a part of the Department of Justice, to handle and dispose of confiscated digital assets like Bitcoin. Additionally, it manages Bitcoin for the cryptocurrency ETF offerings provided by leading asset managers such as BlackRock and Fidelity.

Editor’s note: This article was updated post-publication to include further insights.