What happened? Coinbase applied for a National Trust Charter with the OCC.
Coinbase filed to become a federally chartered national trust company so it can offer payments and other fiat services without depending on partner banks. The move is part of a broader push by big crypto firms — Circle and Ripple have filed similar applications — to operate under clearer federal oversight. Coinbase says it still won’t become a traditional bank, but the charter would expand its regulated service set.
Who does this affect? Customers, partner banks, rivals, and regulators all feel the impact.
Retail and institutional Coinbase users could see easier on- and off-ramps and potentially new payment products if the charter is approved. Partner banks that currently handle Coinbase’s fiat flows could lose business as Coinbase brings more functions in-house, while competing crypto firms may race to secure similar charters. Regulators and policymakers also get a clearer focal point for supervising major crypto players and shaping national rules.
Why does this matter? It could reshape market dynamics and investor sentiment.
If approved, the charter could lower counterparty and banking risks, smooth liquidity between crypto and fiat, and make U.S.-based crypto services more competitive, which may attract more trading volume and capital to compliant platforms. Greater regulatory clarity tends to boost valuations for firms seen as “safe” and could spur consolidation or new product offerings, especially in stablecoins and payments. That said, approval isn’t guaranteed and the market will weigh both the upside from expanded services and the added costs and oversight that come with federal charters.