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Coinbase has recently joined other cryptocurrency firms like Circle (NYSE:CRCL), Paxos, and Ripple in its application for a national trust charter with the Office of the Comptroller of the Currency.
“Should the application be approved, this charter would enable Coinbase to expand its offerings beyond custody services to include payments and other services, thus enhancing regulatory clarity and promoting wider institutional adoption,” stated Greg Tusar, Coinbase’s Vice President of Institutional Product, in a recent blog post.
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This initiative aligns with Coinbase CEO Brian Armstrong’s recent comments about the company’s plans to evolve into a super app that offers a variety of financial services.
Obtaining this trust charter would allow Coinbase to function as a national trust company. This would enable it to provide custody, asset management, and other associated services across the nation with just a single license. However, unlike standard banking charters, this would not authorize Coinbase to engage in lending or accept insured deposits. Currently, Anchorage is the only cryptocurrency entity that holds a trust charter, which it received back in 2021.
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Tusar mentioned that Coinbase is not seeking to become a bank despite its recent application.
“Coinbase does not aim to become a banking institution,” he remarked. “We are convinced that establishing clear regulations and earning the trust of our regulators and customers facilitates innovation at Coinbase while maintaining proper oversight and security.”
Armstrong has recently articulated a significantly larger ambition for Coinbase: to replace traditional banks.
“In the end, we aspire to offer a viable alternative to banks for individuals,” he shared with Fox Business last month. “We want to be their main financial account.”
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Armstrong expressed his conviction that the cryptocurrency sector has the potential to deliver more efficient financial services compared to conventional banking.
“It truly perplexes me, why do we pay 2 to 3% every time we use our credit cards?” he commented. “It shouldn’t be so costly. It’s simply data moving over the internet. It ought to be free or nearly so. And that’s just one illustration of how cryptocurrency can enhance the financial ecosystem.”
