EddieJayonCrypto
3 Oct 25
Coinbase has applied for a national trust charter to expand into traditional finance, aiming to offer custody services and financial products while navigating regulatory challenges.
**Coinbase Seeks National Trust Charter to Expand Into Traditional Finance** In a significant move toward deeper integration with traditional financial systems, Coinbase, America’s largest cryptocurrency exchange, has applied for a national trust charter from the Office of the Comptroller of Currency (OCC). The public company announced the application on Friday, joining a growing list of digital asset firms vying for regulatory clarity and expanded operational capabilities. The proposed charter would allow Coinbase to oversee its own reserves and provide asset custody services for institutional clients, enabling faster product development and innovation. While the exchange emphasized it has “no intention of becoming a bank,” the license would grant it greater flexibility to offer services beyond custody, such as payments and other financial products. This step aligns with Coinbase’s broader strategy to bridge the gap between digital assets and traditional finance. “Clear rules and the trust of our regulators and customers enable Coinbase to confidently innovate while ensuring proper oversight and security,” the company stated in a release. If approved, the charter would provide regulatory certainty, fostering broader institutional adoption of digital assets. Coinbase is not alone in pursuing this path. In 2021, Anchorage Digital became the first crypto firm to secure an OCC trust charter. This year, stablecoin issuers Circle (USDC) and Paxos (PYUSD, PAXG) also applied, alongside fintech company Ripple. The trend reflects a growing push by crypto firms to gain legitimacy and operational autonomy within the U.S. financial framework. The move comes as Coinbase continues to expand its footprint in traditional finance. In July, the company partnered with JPMorganChase to streamline crypto purchases for customers. Additionally, Coinbase has a contract with the U.S. Marshals Service to manage seized digital assets and serves as a custodian for Bitcoin in ETF products offered by major asset managers BlackRock and Fidelity. Since its 2021 initial public offering, Coinbase has positioned itself as a key player in the evolving crypto landscape. The trust charter application underscores its ambition to play a central role in the convergence of digital and traditional finance, while navigating the complex regulatory environment. As the OCC reviews applications, the outcome could shape the future of crypto innovation in the U.S., with Coinbase at the forefront of this transformative shift.