Coinbase applied for a National Trust Company Charter with the US Office of the Comptroller of the Currency (OCC). The application places Coinbase among US crypto firms pursuing the same license. The company framed the step as expanding capabilities under federal oversight.
In its statement, Coinbase said the charter supports “a modern financial system powered by digital assets.” The exchange linked the move to clearer rules and stronger supervision. It positioned the license as part of building compliant infrastructure.
However, Coinbase drew a line on banking status. “Coinbase has no intention of becoming a bank,” the firm said. It added that clear rules and trust from regulators and customers enable Coinbase to innovate with proper oversight and security.
Coinbase National Trust Charter to Bridge Crypto and TradFi
Coinbase said the National Trust Charter helps “bridge the gap” between crypto and traditional finance (TradFi). The exchange presented the charter as a way to align services with established financial rails.
Coinbase said approval would allow expansion beyond custody. It mentioned payments and related offerings under clearer OCC guidance. The scope would still follow the specific authorities in the charter.
The charter would bring federal supervision under one roof. That structure can replace multiple state arrangements. It can also streamline oversight across custody, payments, and operations.
Coinbase On-Ramps, Off-Ramps, and App Changes
Luke Youngblood, a former Coinbase employee who led the creation of Coinbase staking rewards, discussed the mechanics in a podcast on Friday. He said the license would enable Coinbase to “offer basically built-in on-ramp, off-ramp, and no longer have to use partner banks on-ramps, off-ramps.”
Youngblood’s comments point to tighter integration of fiat and crypto flows inside Coinbase. Fewer partners can reduce handoffs for on-ramps and off-ramps. The OCC framework would still govern the exact setup.
He also noted product improvements since 2022. “When I worked there back in 2022, before I left, it was not that great,” he said. “The features, like the Coinbase debit card, didn’t work very well.” He added, “You can really tell they’ve hired some top engineering talent.”
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What a National Trust Company Can Do Under the OCC
A national trust company operates under federal supervision with authorities set by the OCC. It can provide fiduciary services and related activities defined in its charter. It is not automatically a full-service commercial bank.
Brendan Pedersen, a political commentator, outlined the distinction. “Trusts theoretically have more limitations than other types of banks when it comes to business activities, but the distinction has blurred over the years.”
The OCC tailors conditions case by case. Governance, capital, compliance, and management undergo review. Final permissions reflect risk controls and operational plans.
Circle and Ripple National Trust Charter Filings
Other crypto firms pursued similar National Trust Charter paths this summer. On July 1, Circle applied to establish a national trust bank in the US. The move aligns with stablecoin operations under clear oversight.
A few days later, Ripple Labs filed for the same OCC charter. The filing extends Ripple’s US regulatory track for payments and stablecoin activities. The filings indicate a wider push toward federal frameworks.
Brad Garlinghouse, Ripple CEO, said approval would be a “new (and unique!) benchmark for trust in the stablecoin market.” The remark highlights how National Trust Charter approvals could shape stablecoin credibility.
Coinbase Payments and Custody Under a Clearer Framework
Coinbase said charter approval would open a path to payments and related services beyond existing custody. It emphasized operating under clearer OCC guidance. The goal is a single supervisory framework for key activities.
The National Trust Charter can standardize audits and examinations. It can also align counterparties on a federal rule set. The exact permissions will depend on the OCC’s final charter terms.
Coinbase repeated its position again. The exchange seeks scope and clarity through the National Trust Charter, not a transition into a bank.