Coinbase Applies for Federal Trust Charter to Expand Custody and Payment Services

TLDR

• Coinbase has applied for a National Trust Company Charter from the Office of the Comptroller of the Currency but states it has no intention of becoming a bank.
• The trust charter would allow Coinbase to expand custody and payments services under federal oversight without needing state-by-state approvals.
• This charter does not permit lending, deposits, or FDIC insurance but enables asset safeguarding, stablecoin reserve management, and payment settlement.
• Several other crypto firms including Circle, Ripple, Paxos, and Bitgo have also applied for the same license in 2025, with Anchorage Digital currently the only holder.
• The move comes after President Trump signed the first U.S. stablecoin regulation law in July, placing the OCC in charge of oversight.

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Coinbase has submitted an application for a National Trust Company Charter from the Office of the Comptroller of the Currency. The U.S.’s largest crypto exchange is seeking federal regulatory oversight for its operations.

The company made clear it does not plan to become a bank. Greg Tusar, Coinbase’s vice president of institutional product, emphasized this point in a blog post announcing the application.

The trust charter differs from a traditional banking license. It does not allow lending, taking deposits, or offering FDIC insurance to customers.

Instead, the charter permits companies to safeguard assets, manage stablecoin reserves, and settle payments. Tusar said the license would streamline oversight for new offerings and enable continued innovation.

Currently, Coinbase runs its main custody service through Coinbase Custody Trust Company. This entity operates under New York state’s BitLicense regime, which was introduced in 2015.

Federal Oversight Offers More Flexibility

A federal trust charter would change how Coinbase launches new services. The company would no longer need to seek approval from each individual state.

This shift could accelerate the rollout of crypto payment services and other financial products. The exchange has been focusing on payments as stablecoins gain wider use.

Coinbase has a close partnership with Circle for USDC management. USDC is now the world’s second-largest stablecoin by market value.

The exchange has secured deals with major companies including Shopify, PNC, and JPMorgan. These partnerships aim to increase stablecoin adoption for payments and settlements.

Coinbase holds $425 billion in assets under custody. The company’s stock has risen 53% this year to $380 per share.

Regulatory Environment Shifts in Favor of Stablecoins

The timing of Coinbase’s application follows recent federal action on stablecoins. In July, President Donald Trump signed the first U.S. law regulating dollar-pegged stablecoins.

The legislation placed the OCC in charge of stablecoin oversight. For Coinbase, a trust charter could mean expanding payments and custody operations under clearer federal rules.

CEO Brian Armstrong has described Coinbase as a “bank replacement” rather than a bank. At a recent Goldman Sachs event, he explained customers come to Coinbase for crypto custody, trading, payments, staking, and on-chain financing.

Multiple Crypto Firms Seek Same License

Coinbase is not alone in pursuing this charter. Circle, Ripple, Paxos, and Bitgo have all filed applications for the same license in 2025.

Anchorage Digital remains the only crypto company currently holding a national trust charter. The wave of applications reflects growing interest in federal oversight for crypto operations.

Traditional banks have expressed concerns about these applications. Mickey Marshall of the Independent Community Bankers of America wrote that granting deposit-like powers under a trust charter unfairly tilts the playing field.

Marshall argued the charter allows crypto firms to sidestep Congress. Banks worry about competition from crypto companies operating under different regulatory standards.

The OCC’s decision on these applications will affect how digital assets integrate with the U.S. financial system. Approval for Coinbase could strengthen its position as the market’s largest crypto custodian and reduce dependence on partner banks.

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