Coinbase has received approval from the Office of the Comptroller of the Currency to establish Coinbase National Trust Company, according to words from the company.
The approval marks a significant step toward improvement Coinbase as it expands its government-controlled and market-building activities.
The company confirmed that the approval does not allow it to operate as a commercial bank. Coinbase said it does not take retail deposits or deal with depository banks. Instead, the deal aims to provide government oversight of its storage business, which the company says has been a key part of its operations for years.
Under the regulatory approval, Coinbase will need to meet regulatory requirements before the project can begin operating. The company said it intends to use the system to bring uniform government standards to its digital asset storage and infrastructure-related services.
Coinbase framed the decision as a vindication of its long-term strategy of operating within the US regulatory framework. The company said it has invested heavily in compliance and dealing with regulators and sees the approval as part of a broader shift in the way digital companies interact with state-owned banks.
The government is expected to provide a clear agreement in all areas, especially in the area of social security. Coinbase said that it believes that the system can support the future expansion of additional financial products, including transactions related to payments, while remaining within the limits of the management of a reliable company.
The OCC is using pro-crypto services
Over the past year, federal banking regulators have taken steps to define the number of digital services within the financial system. Office of the Comptroller of the Currency has given updated guidelines on how banks can integrate and store crypto-currencies, stablecoin-related services, and blockchain infrastructure, while continuing to evaluate applications from crypto-native companies that want to trust or bank.
Industry participants have adopted federal charters in part to reduce reliance on state licensing authorities and to provide a more transparent approach to national banking. Trust banks, in particular, have become an important place for businesses that want to provide savings services without having to deal with debt or repayment.
OCC has depending on the needs of the organizations in managed storage models and the growing gap between traditional finance and digital companies. Exchanges, regulators, and fintech companies have government oversight and support the establishment of institutions and reduce legal uncertainty.
At the same time, policy makers they argued how federal bank regulators should oversee crypto-native business practices, especially as stablecoins and tokenized assets continue to be integrated into payments and remittances.
The official approval of Coinbase’s trust charter marks a major change in the governance of the system.
If completed, Coinbase’s role in the world of trust could place it among the few crypto-related companies operating under direct federal trust supervision, a sign of continued convergence between the digital economy infrastructure and the US legal banking system.
