Coinbase has received final approval from the Office of the Comptroller of the Currency (OCC) to launch a national trust bank.
The exchange announced on Monday, 9 November, that the OCC had approved its application to charter Coinbase National Trust Company the previous Friday. The charter moves Coinbase’s custody business for institutional clients under a federal framework.
Coinbase described custody as “foundational to our business.” The new charter builds on the New York state trust charter it has held since 2018 through Coinbase Custody Trust Company.
“Trusted custody is essential for bringing more of the financial system onchain,” chief executive Brian Armstrong wrote.
Not a commercial bank
When it received conditional approval in April, Coinbase said the trust company would not become a commercial bank. It said it would not take retail deposits or lend out customer funds through fractional reserve banking.
Coinbase first applied for the charter in 2025.
Joining Circle and Ripple
Coinbase is the latest crypto firm to win a federal trust charter this year. Circle won final approval in July for a trust bank that manages the reserves behind its USDC stablecoin, and Ripple won final approval last month for a trust bank behind its RLUSD stablecoin.
Others are still waiting. Payments company Block applied in September to hold Bitcoin for clients, and a trust company linked to the Trump family’s World Liberty Financial won conditional approval in August for a charter tied to its USD1 stablecoin, according to Reuters.
Banks push back
The approvals face opposition. The Independent Community Bankers of America has sued the OCC, arguing that crypto firms are entering banking through a “side door.” Democratic Sen. Elizabeth Warren has argued that the OCC’s crypto charter approvals, including Coinbase’s, are illegal.
What happens next
The lawsuit from community banks could decide whether these charters stand. A Democratic-controlled Congress from January may also bring closer scrutiny of the OCC’s approvals.
