A landmark step toward regulatory clarity and institutional adoption
In a significant development for the cryptocurrency industry, Coinbase announced on October 3, 2025, that it has applied for a National Trust Company Charter from the Office of the Comptroller of the Currency (OCC). This move positions the crypto exchange giant alongside other major players in the digital asset space who are seeking federal regulatory oversight in the United States.
What Does This Mean?
Coinbase is clear about one thing: this isn't about becoming a bank. Instead, the company is seeking to expand its regulatory framework to unlock new business capabilities while maintaining the highest standards of oversight and security.
The national trust charter would build upon Coinbase's existing industry-leading custody business, potentially opening doors to:
- Enhanced custody services for institutional clients
- Payment solutions integrated with digital assets
- New financial products that bridge traditional and crypto finance
- Streamlined regulatory oversight for future innovations
Following a Growing Trend
Coinbase isn't pioneering this path alone. The company is following in the footsteps of several other crypto and fintech companies that have pursued federal banking charters:
- Circle (USDC stablecoin issuer)
- Paxos (stablecoin and crypto infrastructure provider)
- Ripple (blockchain payments company)
Interestingly, this trend extends beyond crypto-native companies. International fintech giant Nubank has also applied for a US national bank charter, demonstrating that the convergence of traditional and digital finance is happening across multiple fronts.
Why This Matters
1. Regulatory Clarity
Coinbase has been operating under New York's BitLicense framework since 2015 through the NYDFS (New York Department of Financial Services). While this pioneering state-level regulation helped establish operational maturity, a federal charter would provide:
- Uniform oversight across all states
- Clear guidelines for product development
- Reduced regulatory fragmentation
2. Institutional Confidence
A national trust charter signals serious regulatory commitment, which is crucial for institutional adoption. Large financial institutions and corporations need certainty that their crypto partners operate under robust, federally-recognized oversight.
3. Product Innovation
With regulatory clarity comes the confidence to innovate. Coinbase explicitly mentions that the charter would enable them to launch new products beyond custody, particularly in payments and related services—areas where crypto could significantly disrupt traditional finance.
Maintaining Current Operations
Importantly, Coinbase Custody Trust Company (CCTC) and Coinbase Inc. will continue operating under NYDFS oversight during the OCC review process. The company acknowledges that New York's BitLicense framework has been instrumental in building the operational maturity that now makes a federal charter application viable.
The Bigger Picture
This application comes at a pivotal moment. While Congress continues working on comprehensive crypto market structure legislation, digital assets are already deeply integrated into the financial system. Companies like Coinbase are essentially saying: the future is already here, and we need regulatory frameworks that reflect that reality.
As Greg Tusar, writing for Coinbase Institutional, notes: "We're not the first crypto company to seek a federal charter and we won't be the last."
What's Next?
The OCC will now review Coinbase's application, including soliciting public comments. This process can take months or even longer, but if approved, it would represent a major milestone not just for Coinbase, but for the entire cryptocurrency industry's integration into the traditional financial system.
For Coinbase, this isn't about abandoning crypto's innovative spirit—it's about building bridges between the digital asset economy and regulated finance, ensuring that innovation happens within a framework of trust, security, and proper oversight.
The cryptocurrency industry continues to mature, and applications like this one signal a future where digital and traditional finance aren't separate worlds, but integrated parts of a modern financial system.