Cryptocurrency giant Coinbase has secured approval from the US Office of the Comptroller of Currency to operate as a nationally chartered trust bank, according to an announcement from the company.
Expanded Services Under Limited Charter
Although this designation is more restrictive than a full banking charter and prevents Coinbase from offering traditional consumer deposits or issuing loans, it grants authorization for the company to manage payments, provide custody services, and grow its stablecoin operations.
Describing the milestone in an official press release, the company stated, “This is an important step forward for Coinbase and the broader crypto industry.” The firm added, “Coinbase has always pursued clear, consistent and best-in-class regulatory oversight that will move the financial industry, and American leadership in digital assets forward.”
Industry Standing and Previous Regulatory Challenges
While other digital asset businesses such as Block and Wise have previously applied for trust charters, only Circle Internet Group, Ripple, and now Coinbase have achieved success. Positioning itself as the leading global crypto custodian, Coinbase recently established a partnership with Citigroup to facilitate conversions between stablecoins and traditional fiat currency.
Despite this regulatory progress, the company has faced significant legal hurdles in the past. The US Securities and Exchange Commission filed lawsuits against Coinbase in 2022 and 2023 regarding the alleged unlawful sales of unregistered securities and additional securities law infractions. Furthermore, the company paid $100 million in 2023 to settle with New York state authorities over compliance failures concerning money transmission rules and other operational issues, and suffered a security breach last year where attackers demanded a $20 million ransom to withhold stolen information.
