Coinbase receives approval to become a chartered trust bank
Coinbase has received approval from the US Office of the Comptroller of Currency to become a nationally chartered trust bank.
Coinbase has secured approval to become a chartered trust bank in the United States, expanding its capabilities in payments and custody services. The company announced its designation from the US Office of the Comptroller of Currency, though it is a more limited charter compared to a full bank license. While Coinbase cannot handle regular deposits or grant loans, the new status enables it to conduct payments, custody services, and further develop its stablecoin business.
The crypto giant hailed this as a significant milestone, emphasizing its commitment to regulatory clarity and advancing financial innovation. Only Circle Internet Group, Ripple, and Coinbase have successfully obtained this status thus far. Coinbase positions itself as the world's largest crypto custodian, recently collaborating with Citigroup for stablecoin-to-currency conversions.
However, the company's history is not without controversy. The SEC sued Coinbase in 2022 and 2023 for alleged securities law violations, resolving the latter case with a $100 million settlement. Additionally, Coinbase faced a $20 million ransom demand from hackers in 2023, who sought to keep the breach information private.
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