Coinbase has received final approval from the US Office of the Comptroller of the Currency (OCC) to establish Coinbase National Trust Company, a federally chartered trust bank dedicated to digital asset custody. The announcement, made on November 9, marks the culmination of a process that began with preliminary conditional approval in April.
The new entity will operate as a national trust bank, a designation narrower than a full banking license. According to the OCC's earlier decision letter, the bank will provide custody services primarily for institutional clients, with its main office located in New York. Custody customers will be able to hold and transfer both fiat currency and digital assets, with fiat held in segregated accounts at third-party banks.
While the trust bank itself will not offer staking, prime trading, or prime financing, it may act as a finder, connecting clients to these services provided by Coinbase affiliates. The OCC's letter also noted that the bank does not plan to issue stablecoins, though Coinbase has indicated the charter could lay groundwork for future payment and stablecoin services.
Coinbase's custody operations are currently managed by Coinbase Custody Trust Company, a New York State-chartered limited purpose trust company. Under the approved plan, the entire custody business will migrate to the national trust bank over a three-year period. The approval carries specific capital requirements, including maintaining at least $60 million in tier 1 capital, with a portion held in liquid assets, and 180 days of operating expenses in reserve.
This approval places Coinbase among a growing list of crypto firms securing national trust charters. Ripple received final approval in October for its own trust bank, and Circle obtained approval in July. Other companies, including Crypto.com and Stripe-owned Bridge, remain in the conditional stage.
The OCC's actions have not gone unchallenged. The Independent Community Bankers of America filed a lawsuit in October, arguing the regulator exceeded its authority by granting charters to crypto firms. The trade group's CEO stated that Congress did not intend the charter to serve as a backdoor into the banking system for crypto companies.
For institutional clients and investors monitoring the crypto custody landscape, the practical implications hinge on the migration's execution. The speed and terms of transferring existing custody accounts to the new federal charter will be closely watched, as they could influence client confidence and operational stability.
Coinbase described the approval as building on its long-standing relationship with New York regulators, which began with a BitLicense in 2017. The move brings a degree of federal uniformity to its custody services, potentially simplifying compliance across state lines.
This article is for informational purposes only and does not constitute financial advice.
