Coinbase wins final OCC approval for national trust charter

Has Coinbase secured a full federal trust charter? Yes: the OCC application record lists Coinbase National Trust Company as approved on April 2 and effective on Nov. 6. That completes the charter process that began with conditional approval, bringing the new entity under the Office of the Comptroller of the Currency’s national trust bank framework.

Does this make Coinbase a full-service bank?

No: the charter limits the bank to trust-company operations and related activities. The OCC’s April decision said its proposed business centers on fiduciary digital-asset custody, primarily for institutional clients, plus services tied to customers’ custody accounts. Those accounts may accept, hold and transfer custodied fiat currency and digital assets; the charter does not authorize Coinbase National Trust Company to operate as a general commercial bank.

What happens to Coinbase’s existing custody business?

Coinbase says the charter will let it expand its custody business under federal regulation. The OCC’s decision says the new bank plans to migrate the entire custody business from Coinbase Custody Trust Company, a limited-purpose trust company chartered by New York’s Department of Financial Services. That transfer is planned over a three-year period, so the federal charter does not mean the existing business moves all at once.

What should custody clients watch next?

The next milestone is the migration into Coinbase National Trust Company. Coinbase’s announcement of final OCC approval describes the charter as a step toward bringing its trust activities into a consistent federal framework. Watch how the planned three-year transfer proceeds and which custody services move first.

References

• OCC application record — apps.occ.gov
• announcement of final OCC approval — coinbase.com