Coinbase Seeks OCC National Trust Bank Charter to Expand Institutional Custody Business

Coinbase Global has applied for a national trust bank charter, joining a growing list of cryptocurrency companies pursuing a federal credential that is drawing both interest and unease across the banking sector. The application, submitted to the Office of the Comptroller of the Currency (OCC), is focused on expanding Coinbase’s institutional custody franchise, according to Greg Tusar, the company’s vice president and head of institutional product. “We’re excited about securing a national trust charter for our custody business and believe it can unlock a number of opportunities over time,” Tusar said in an interview.

A national trust bank charter is distinct from a full-service national bank charter. It does not authorize the holder to make loans or accept deposits, and accounts generally are not insured by the Federal Deposit Insurance Corporation. Instead, the charter enables a company to act as a fiduciary that safeguards customer assets, executes instructions on clients’ behalf for payments and other transactions, and settles certain activities. Often described as a special-purpose national bank charter, it also allows eligible firms to hold and manage reserves that back payment stablecoins.

Stablecoins are digital tokens designed to maintain a stable value by linking their price to a reference asset such as the U.S. dollar, another fiat currency, or commodities like gold. Issuers typically support that peg with reserve assets—most commonly cash and short-term U.S. Treasurys—and disclose the composition of those reserves