Key Takeaways
- •Coinbase submits application for a National Trust Company Charter to expand its regulatory oversight.
- •The move aims to bridge the gap between crypto markets and traditional finance while maintaining core operational focus.
- •Approval could open doors for new offerings such as payments and on-ramp/off-ramp services without relying on partner banks.
- •
- •Industry experts see this as a step toward more trustworthy and regulated crypto services in the U.S.
Crypto exchange Coinbase has officially taken a significant step toward deepening its engagement with the U.S. banking system by applying for a National Trust Company Charter with the Office of the Comptroller of the Currency (OCC). The move is part of a broader trend among American crypto firms seeking official banking licenses to legitimize their operations and foster innovation within a clearer legal landscape.
Coinbase pursues the license to “bridge the gap” with TradFi
By aiming for this license, Coinbase intends to strengthen its position in the evolving crypto economy and integrate more features that align with traditional financial services. However, Coinbase emphasizes it has no plans to transform into 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.”
Luke Youngblood, a former Coinbase executive involved in developing Coinbase staking rewards, explained that the license could enable the platform to facilitate on‑ and off‑ramps directly, reducing dependency on partner banks. He noted that this would essentially streamline user access to fiat conversions.
Approval of the license would allow Coinbase to expand beyond custody and trading services into areas like payments, thereby offering a more comprehensive suite of financial products under regulatory oversight. Industry analysts believe this can bolster the trustworthiness of crypto services in a U.S. regulatory context.
However, some political commentators point out the nuanced limitations of trust companies, noting that “Trusts theoretically have more restrictions than banks in their business activities, but those distinctions have become less clear over time.”
Industry moves indicate broader industry support
Coinbase’s application follows recent efforts by other notable crypto players. For example, stablecoin issuer Circle applied to establish a similar trust bank, with Ripple Labs filing shortly thereafter. Ripple CEO Brad Garlinghouse highlighted that if these licenses are granted, it could set a “new (and unique!) benchmark for trust in the stablecoin market,” signaling a major step for crypto regulation in the U.S.
As the crypto markets grow and mature, such efforts reflect an industry eager to operate more transparently and within established financial norms—an essential component for broader mainstream adoption and stability in crypto markets. This movement toward licensing and regulation underscores the increasing importance of trust and security in the evolving landscape of blockchain and digital assets.