US regulator approves crypto firms to establish trust banks

Several major cryptocurrency firms, including Ripple and Circle, have received conditional authorization from a leading U.S. banking regulator to form national trust banks, a step that could deepen the connection between digital assets and the traditional financial system.

The Office of the Comptroller of the Currency has issued preliminary approval for Circle and Ripple to establish new national trust banks. The agency has also conditionally cleared applications from BitGo, Paxos, and Fidelity to convert their existing state trust bank licenses into national charters, enabling them to operate nationwide.

Each institution must still obtain final regulatory approval before beginning operations. Once finalized, these national trust bank licenses would permit the companies to safeguard customer assets and facilitate faster payment settlements. The charters do not authorize the acceptance of cash deposits or the issuance of loans.

At present, Anchorage Digital remains the only digital asset firm holding a national trust bank charter. Overall, the OCC oversees around 60 national trust banks.

Regulatory officials stated that allowing new participants into the federal banking system can benefit consumers, financial markets, and the broader economy.

Some traditional banking groups opposed the approvals, warning that granting such charters to crypto firms could result in lighter regulatory oversight and increased systemic risk.

Sources:

• US regulator grants crypto firms initial approval to launch trust banks