TLDR
- OCC says firms conducting legal digital asset activities can pursue national bank charters.
- Ripple received conditional approval to establish Ripple National Trust Bank.
- Circle received conditional approval to establish First National Digital Currency Bank.
- The OCC received 40 de novo applications during the past 18 months.
- National trust charters do not automatically permit retail deposits or general commercial lending.
The U.S. Office of the Comptroller of the Currency has reaffirmed that companies involved in Bitcoin, digital assets and other legally permitted technologies can pursue federal bank charters. The regulator said its chartering process remains open to new entrants as part of a broader effort to increase competition in the U.S. banking system.
Comptroller of the Currency Jonathan V. Gould said companies conducting lawful digital asset activities “should have a path to becoming a national bank.” Crypto firms including Ripple and Circle have already received conditional approval for national trust bank charters, while several other digital asset companies have submitted applications.
OCC Expands Access to National Bank Charters
The OCC is seeking to reverse a long decline in applications for new federal bank charters. From 2011 through 2014, the regulator received fewer than four charter applications per year on average, with no applications submitted during some years.
Activity has increased more recently, with the OCC receiving 40 de novo applications during the past 18 months. Those filings include applications for national trust banks, a type of institution that has operated under OCC supervision for decades.
“For more than a decade, regulators signaled that those seeking a federal bank charter and federal deposit insurance need not apply,” Gould said. He added that the OCC is seeking a clearer application process for companies conducting legally permitted financial activities.
The agency said it has reached decisions on some completed charter applications within 120 days. A full-service national bank has also received final OCC approval and opened for business for the first time in five years.
Ripple and Circle Receive Conditional Approval
Several digital asset companies have pursued national trust bank charters as they expand regulated custody, settlement and fiduciary services. Circle received conditional approval to establish First National Digital Currency Bank, while Ripple received conditional approval for Ripple National Trust Bank.
Other crypto companies have submitted applications or sought conversions of existing state trust operations. These include BitGo, Fidelity Digital Assets and Paxos, while Coinbase and Zero Hash have also pursued national trust bank applications.
World Liberty Financial has submitted an application to establish World Liberty Trust Company. Approval processes differ between applicants, meaning a submitted application does not provide the same regulatory status as conditional or final OCC approval.
National trust bank charters can provide federal supervision for activities such as digital asset custody, fiduciary services and certain settlement operations. However, a national trust charter does not automatically give a company the full powers of a traditional commercial bank.
Crypto Trust Banks Face Limits Under Federal Charters
National trust banks generally operate under narrower authority than full-service national banks. Crypto companies receiving these charters cannot automatically accept traditional retail deposits or conduct general commercial lending in the same manner as conventional banks.
Federal charters can allow approved firms to conduct permitted activities under OCC supervision rather than relying only on separate state trust frameworks. Companies must still meet regulatory requirements before receiving final authorization and beginning federally chartered operations.
The OCC’s approach comes alongside changes at the Federal Deposit Insurance Corporation, which has introduced a new process for reviewing deposit insurance applications. Gould said the FDIC’s process aligns with the OCC’s effort to encourage new bank formation.
“De novo chartering is a sign of a healthy banking system,” Gould said. The OCC plans to continue reviewing applications from traditional financial companies and firms using digital assets or other new technologies, provided their proposed activities comply with federal banking law.
