Coinbase ( COIN ) said Thursday it had received the first approval of a national trust company charter from the US Office of the Comptroller of the Currency, Bloomberg reported, marking a step toward it operating as a federally regulated crypto depository.
The approval is not final. It’s a conditional green light that sets out requirements Coinbase must meet before it can receive a full charter. These typically include building compliance systems, hiring key people and reviewing legislation. The OCC also expects firms to demonstrate that they can manage risk, protect client assets and comply with anti-money laundering regulations. Only after these steps are completed can the agency give full approval.
If finalized, the charter would allow Coinbase to operate as an uninsured national trust company. This structure allows the firm to hold digital assets on behalf of clients, but prevents it from taking deposits or making loans.
Coinbase first applied for the charter in October, along with firms such as Ripple. Recently, Citadel-backed exchange EDX Markets said it had applied for a similar structure. The cluster of applications points to growing demand for regulated custody as large investors enter crypto markets.
For institutions, custody is less about trading and more about trust. A pension fund, for example, may want exposure to bitcoin but needs a regulated entity to hold the asset safely. A federal charter can provide that security in a way that state licenses cannot.
The move aligns with Coinbase’s efforts to rely less on trading fees, which can fluctuate with market cycles. Storage provides more stable income. The company already acts as a custodian for several US spot bitcoin exchange-traded funds, holding the underlying assets on behalf of fund managers.
Coinbase did not immediately respond to a request for comment.
