Coinbase Wins Conditional US Approval for National Trust Charter

Coinbase has secured conditional approval from the Office of the Comptroller of the Currency to establish a national trust company. The approval positions Coinbase to operate its custody business under a federal framework while expanding institutional services.

Coinbase Gains Federal Path for Custody Services

According to Greg Tusar, Head of Institutional Product at Coinbase, the charter targets custody and market infrastructure operations. He stated the approval brings federal regulatory uniformity to services already built over several years. The structure replaces fragmented state-level oversight with a single federal standard.

However, Coinbase clarified it will not operate as a commercial bank. The company will not accept retail deposits or engage in fractional reserve banking. Instead, the trust charter focuses strictly on safeguarding client assets under OCC supervision.

The approval remains conditional, meaning Coinbase must meet specific regulatory requirements before full activation. The company confirmed it will work closely with OCC staff to satisfy those conditions. This process determines how quickly the charter becomes operational.

Scope Expands Beyond Custody Framework

With federal oversight in place, Coinbase plans to expand into new financial services despite top U.S. banks weighing a lawsuit against OCC over crypto firm charters.

According to Tusar, the framework could support payments and related offerings for institutions and individuals. These services build on Coinbase’s existing role in crypto market infrastructure.

The company already acts as a custodian for most U.S.-listed spot crypto exchange-traded funds. It also supports asset managers entering the digital asset sector. As a result, Coinbase holds a central position in facilitating institutional access.

Additionally, Coinbase maintains ties to Circle Internet Group through a minority investment. The two firms share revenue linked to the USDC stablecoin. This relationship further integrates Coinbase into stablecoin and payments ecosystems.

Regulation and Other Charter Applications

The OCC has increased its involvement in crypto oversight over the past year. It has issued guidance covering custody, stablecoin services, and blockchain infrastructure within banking systems. This approach indicates growing institutional demand for regulated digital asset services.

As a result, several crypto firms have pursued similar trust charters. Paxos, BitGo, Ripple, and Circle have all applied for approval. Last month, Bridge, owned by Stripe, also received conditional approval for a similar structure.

Coinbase applied for its charter in October. The top crypto exchange aims to reduce reliance on state licensing systems through federal oversight. This transition addresses ongoing uncertainty while Congress continues work on market structure legislation.

Meanwhile, Coinbase continues operating under New York Department of Financial Services oversight. Its BitLicense and state trust charter remain active alongside the federal application. This dual structure maintains continuity as the company transitions toward OCC supervision.