- Coinbase is seeking a national trust charter to expand its crypto custody and payment services under federal oversight.
- The move follows new SEC guidance allowing state-chartered trust firms to act as qualified crypto custodians.
- Traditional banks oppose the shift, warning of risks as crypto firms push deeper into regulated financial services.
Coinbase has submitted an application for a national trust charter with the U.S. Office of the Comptroller of the Currency (OCC). This move positions the crypto exchange alongside Ripple, Circle, and Paxos, who have also sought similar licensing. The application comes at a time when traditional banking associations are raising concerns about crypto firms expanding into regulated financial services.
Coinbase Expands Regulatory Coverage Without Becoming a Bank
Confirmed by Crypto Hawk through a post on X, the exchange does not plan to become a traditional bank. Instead, it aims to broaden its services under more apparent regulatory oversight. The OCC trust charter would allow Coinbase to strengthen its custody services and explore additional offerings in payment infrastructure.
Currently, Coinbase operates under the supervision of the New York Department of Financial Services. A national trust license would bring the firm under federal regulation, streamlining compliance across states. The firm indicated that the charter would offer a more consistent framework to support its expansion goals.
New Charter Follows Recent SEC Custody Guidance
The application follows new guidance from the Securities and Exchange Commission (SEC), which permits state-chartered trust companies to serve as qualified crypto custodians. In response, Coinbase is seeking a national license to operate under a more unified regulatory structure. This would support its longer-term initiatives in digital asset custody and infrastructure.
Ripple, Circle, and Paxos had previously applied for national trust charters and encountered resistance from banking associations. These groups argued that crypto entities entering the banking space could create operational risks and disrupt existing financial systems. The industry remains under scrutiny as lawmakers continue shaping new rules for digital asset regulation.
Charter Opens Door to New Offerings Beyond Custody
Coinbase stated that the trust charter will allow it to develop new financial products beyond simple asset storage. The exchange is currently working on features such as tokenized equity offerings and prediction markets. The charter could also provide the regulatory clarity needed to move forward with payment services and broader financial integration.
As part of its strategic direction, Coinbase intends to support the mainstream adoption of digital assets. The firm has outlined plans to grow into what it calls the “Everything Exchange,” offering a full spectrum of financial tools. Banking associations have expressed concerns about the entry of crypto firms into regulated financial roles.
Coinbase CEO Brian Armstrong has responded publicly, criticizing banks for attempting to limit customer rewards on stablecoins. He also commented on the ongoing CLARITY Act, where some banks have lobbied to restrict yield-generating features offered by crypto platforms. Coinbase maintains that regulatory clarity is necessary to build competitive and secure financial products within the evolving digital asset market.
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