Crypto exchange Coinbase has applied for a National Trust Charter to expand its services and reduce its reliance on banking partners, explaining: “We are not becoming a bank.”
Coinbase seeks to obtain a National Trust Charter banking license
Crypto exchange Coinbase has officially applied for a National Trust Company Charter with the US Office of the Comptroller of the Currency (OCC). The company says that this step will strengthen the trust of regulators and customers and pave the way for business expansion.
Despite this, Coinbase emphasizes: “We do not intend to become a bank.” It is about creating a bridge between the crypto market and traditional finance without changing the core business model.
Why Coinbase
Former top manager of the exchange Luke Youngblood explained that the license will allow Coinbase to abandon intermediaries:
“It is effectively a built-in on-ramp and off-ramp without the need for partner banks.”
Obtaining a license will also allow it to expand its range of services — from asset custody to payment solutions — under clearer rules from regulators.
Trend on licenses
Coinbase is not alone:
- Circle filed a similar application on July 1;
- Ripple Labs applied a few days later.
Ripple CEO Brad Garlinghouse said that obtaining a license will be “a new unique standard of trust for the stablecoin market.”
What’s next
Despite the fact that trust companies are formally more restricted than banks, experts note that the line between these statuses is already very blurred.
Coinbase is betting on increased regulatory clarity and technological development — according to Youngblood, the exchange’s application has “grown noticeably in quality and functionality” in recent years.
Related: Coinbase CEO Brian Armstrong has set a goal for AI to write half of the platform’s code by October
