Coinbase, the largest cryptocurrency exchange in the U.S., is seeking a national trust charter from the Office of the Comptroller of the Currency (OCC). This move is part of a broader trend among digital asset firms to integrate further with traditional finance and gain clearer regulatory oversight. While the application might suggest banking ambitions, Coinbase has explicitly stated that it is not seeking to become a bank.
The national trust charter differs significantly from a full-service bank charter. It would not allow Coinbase to make loans or accept traditional deposits, and customer accounts would generally not be covered by FDIC insurance. Instead, the charter would enable Coinbase to operate as a federally licensed trust bank, allowing it to safeguard customer assets, settle transactions, and manage stablecoin reserves.
According to Coinbase's Vice President of Institutional Product, Greg Tusar, the company has "no intention of becoming a bank" and is not pursuing a full-service national bank charter. Tusar clarified that the aim is to streamline compliance and foster innovation within the crypto space.
Currently, Coinbase operates under a limited-purpose trust charter from the New York Department of Financial Services (NYDFS), which allows it to offer custody services to investment advisors. However, a federal charter would eliminate the need for multiple state licenses, simplifying compliance and accelerating product development. It would also speed up institutional adoption of digital assets, bridging the gap between the crypto economy and the traditional financial system.
If approved, the OCC charter would open opportunities for Coinbase to launch new products beyond custody, including payments and related services. The company believes that clear rules and the trust of regulators and customers are essential for confident innovation, ensuring proper oversight and security.
Coinbase is not the first crypto firm to pursue a national trust charter. Anchorage Digital already holds such a charter, and several other firms, including Circle, Ripple, and Paxos, have filed similar applications this year. This trend reflects a growing desire among crypto companies for federal oversight and a more streamlined regulatory environment.
The pursuit of an OCC charter signifies Coinbase's commitment to expanding its business capabilities and regulatory oversight. The company views it as a way to solidify its role in digital asset custody and enable faster service rollouts. By seeking federal oversight, Coinbase aims to support the long-term integration between the crypto economy and traditional finance.
Wall Street analysts have a generally positive outlook on Coinbase stock. According to TipRanks, the consensus rating is a Moderate Buy, based on 15 Buys, 12 Holds, and two Sells assigned in the past three months. The average COIN price target is $380.38 per share, implying a slight upside potential.
