The Office of the Comptroller of the Currency (OCC) has approved five national trust bank charter applications. The approvals are conditional but will allow the entities to operate under federal rules. The entities approved are in the digital asset sector, including First National Digital Currency Bank, Ripple National Trust Bank, BitGo Bank & Trust, National Association, Fidelity Digital Assets, National Association, and Paxos Trust Company, National Association.
First National Digital Currency Bank and Ripple National Trust Bank were approved for de novo national trust bank charters.
Subject to meeting the OCC’s conditions, these institutions will join approximately 60 other national trust banks currently supervised by the OCC.
BitGo Bank & Trust, National Association, Fidelity Digital Assets, National Association, and Paxos Trust Company, National Association were approved to convert from a state trust company to a national trust bank.
The OCC noted that in granting these conditions, it applied the same rigorous review and standards it applies to all charter applications.
Comptroller of the Currency Jonathan Gould said that new entrants into the federal banking sector are good for consumers, the banking industry, as well as the economy.
“They provide access to new products, services and sources of credit to consumers, and ensure a dynamic, competitive and diverse banking system. The OCC will continue to provide a path for both traditional and innovative approaches to financial services to ensure the federal banking system keeps pace with the evolution of finance and supports a modern economy,” said Gould.
By being federally regulated, these entities may offer services across all 50 states without having to jump through hurdles at the state level.
Some anticipated pushback from the traditional banking industry, which may be concerned about these digital asset-focused businesses.
Prior to these approvals, Anchorage Digital was the only entity to have received federal approval. During the Biden Administration, crypto firms that aspired to enter the federal banking system were denied due to the overt hostility directed by the administration toward Fintech innovation.
The conditional approvals are below:
