The U.S. Office of the Comptroller of the Currency (OCC) has issued new guidance allowing national banks and federal savings associations to hold Ethereum (ETH) for operational purposes, including paying blockchain network fees. The update marks a meaningful shift in how regulated financial institutions may interact with public blockchain networks.
Permitted Custody of Digital Assets for Business Functions
According to the OCC’s interpretive letter, banks are now permitted to custody ETH, BTC, SOL, and XRP when the assets are directly linked to business functions. The holdings must not be used for speculative activity and must remain within established compliance, risk management, and supervisory frameworks.
Improving Operational Efficiency with Native Tokens
The decision removes a previous obstacle that prevented banks from holding native Ethereum tokens needed to process transactions or pay gas fees on-chain. By allowing institutions to hold ETH directly, the guidance is expected to improve operational efficiency for banks that rely on blockchain infrastructure for settlement, data verification, or other digital processes.
Focus on Operations, Not Investment
Regulators emphasized that the authorization applies only to situations where the assets are required for bank operations. The policy is not designed to facilitate investment activity or price exposure to digital assets.
Potential for Broader Institutional Adoption
While the immediate impact is limited to technical and operational functions, the change may contribute to broader institutional participation in blockchain systems. Greater access to native tokens could enable banks to more easily integrate blockchain-based services and support ongoing modernization initiatives in the financial sector.
Historical Precedent for Technological Advancements
The OCC noted that similar regulatory updates in the past have often preceded deeper adoption of emerging technologies, suggesting that the ability to hold ETH for functional purposes may support future advancements in crypto-related financial services.