Coinbase Files for US National Trust Company Charter
Coinbase has submitted an application for a National Trust Company Charter with the Office of the Comptroller of the Currency (OCC). The move follows a trend among US-based crypto companies seeking similar licenses. If approved, the charter would allow Coinbase to expand its services under a federal regulatory framework.
New Regulatory Pathway
According to a statement from Coinbase, the application marks a step toward expanding the companys business capabilities and increasing regulatory oversight. The exchange said the license aligns with its goal to connect the crypto economy with the traditional financial system. Despite the new direction, Coinbase said it does not intend to shift focus from its current operations.
Potential Service Expansion
Luke Youngblood, a former Coinbase staff member involved in the staking rewards program, commented on the charters impact. In a recent podcast, Youngblood stated the license would enable Coinbase to streamline its on- and off-ramp services. This change would reduce reliance on partner banks, improving control and possibly user experience.
Coinbase also noted the charter could support an expansion beyond custody. It could facilitate the companys ability to offer payments and other regulated products. The charter provides a clearer regulatory path for launching new services.
Industry Context and Recent Moves
Several other crypto firms are also pursuing National Trust Charters. Earlier this month, a stablecoin provider reported receiving preliminary approval to open a national trust bank. Ripple Labs has also recently applied for the charter. Ripple CEO Brad Garlinghouse described the move as a potential milestone for trust in the stablecoin sector.
While industry observers note that trust companies have more business limitations than other banks, these distinctions have become less clear over time.
Coinbase Strengthens Retail Services
Youngblood also commented on Coinbases retail platform improvements since 2022, noting advances in product quality and engineering talent. Features such as the Coinbase debit card have reportedly improved, reflecting the companys investment in its technology team.
Coinbases charter application is part of a wider trend as US crypto firms prepare for evolving regulations. The outcome may shape how exchanges deliver regulated services within the country.
Related content
Comments
