Key Highlights
- The OCC has granted Coinbase provisional authorization to establish a federally chartered trust entity
- This charter focuses exclusively on custody services and market infrastructure operations
- Retail banking activities and deposit-taking are not included in the charter scope
- Multiple procedural requirements must be satisfied before full operational authority
- This federal designation is anticipated to attract a wider range of institutional clients
- Coinbase’s current state-level licenses and trust charters continue operating without interruption
The Office of the Comptroller of the Currency has granted preliminary authorization for Coinbase (COIN) to launch Coinbase National Trust Company as a federally regulated trust institution.
This federal charter is deliberately designed for custody operations and infrastructure services. The company will not engage in consumer deposit activities or function as a conventional fractional reserve banking institution.
According to Greg Tusar, Co-CEO of Coinbase Institutional, this authorization delivers “federal regulatory uniformity to the custody and market infrastructure business we have been building for years.”
The exchange filed its application for federal trust status with the OCC in October. Coinbase currently maintains a limited-purpose trust charter issued by the New York Department of Financial Services, which authorizes digital asset custody operations at the state level through Coinbase Prime, its institutional division.
The federal designation provides expanded capabilities. “We’re the custodian to over 80% of the world’s digital asset ETFs, but there are a number of other asset managers and hedge funds and others that would like to see the entity that they face have this kind of charter,” Tusar explained.
Essentially, federal recognition unlocks institutional opportunities that state-level authorization alone cannot provide.
Coinbase’s institutional division reported $245.7 billion in assets under custody as of June 2025 — representing approximately 7% of the entire cryptocurrency market, based on data from its charter submission.
Remaining Requirements for Full Approval
Provisional authorization differs significantly from final operational clearance. Before Coinbase can fully activate this charter, the company must convene its inaugural board meeting, formalize corporate bylaws, implement payment infrastructure, and successfully complete a pre-launch examination by OCC supervisors.
The company has confirmed its commitment to collaborating with OCC personnel throughout the completion of these requirements.
Meanwhile, Coinbase’s existing New York Department of Financial Services BitLicense and state-level trust charter remain in full effect. Coinbase, Inc. continues standard operations under NYDFS supervision without disruption.
Other Applicants Pursuing Federal Charters
Coinbase is part of a growing group seeking this federal designation. The OCC issued conditional approvals to multiple cryptocurrency firms late last year, including BitGo, Circle Internet Group, Fidelity Digital Assets, Ripple, and Paxos.
Additionally, Morgan Stanley, Citadel Securities-backed EDX Markets, and World Liberty Financial — the Trump family’s prominent cryptocurrency initiative — have submitted applications for national trust charters.
This federal charter also creates opportunities for developing payment solutions and additional financial services, targeting both institutional partners and individual users.
While Congress has made progress on market structure legislation, federal oversight for cryptocurrency custodians has remained inconsistent. This OCC approval directly addresses that regulatory gap for institutional participants without requiring comprehensive legislative reform.
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