Coinbase (COIN) Stock Secures Preliminary Federal Trust Charter Approval from OCC

Key Takeaways

• The OCC has granted Coinbase conditional authorization to establish a federally chartered trust entity
• This charter is limited to custody operations and market infrastructure, excluding retail deposits and traditional banking
• Final approval hinges on Coinbase completing multiple regulatory and administrative requirements
• The federal designation is anticipated to expand Coinbase’s reach among institutional investors
• Coinbase’s current New York state trust charter and BitLicense continue operating without interruption

The Office of the Comptroller of the Currency has issued conditional authorization for Coinbase (COIN) to launch Coinbase National Trust Company, a federally chartered trust institution.

This OCC charter is tailored exclusively for custody operations and market infrastructure services. The crypto exchange will not accept consumer deposits or function as a conventional fractional reserve banking institution under this authorization.

According to Greg Tusar, Co-CEO of Coinbase Institutional, the clearance provides “federal regulatory uniformity to the custody and market infrastructure business we have been building for years.”

Coinbase filed its national trust charter application with the OCC in October of last year. The platform currently operates under a limited-purpose trust charter issued by the New York Department of Financial Services, which authorizes digital asset custody services at the state level through Coinbase Prime, its institutional division.

Coinbase Global, Inc., COIN

The federal charter represents a significant upgrade. “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, the OCC certification unlocks 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 figures from its charter filing.

Outstanding Requirements for Final Approval

Conditional authorization differs from full approval. Before the charter becomes operational, Coinbase must convene its inaugural board meeting, implement corporate bylaws, set up payment infrastructure, and successfully complete a pre-launch examination by the OCC.

The company has committed to collaborating closely with OCC regulators to satisfy all outstanding conditions.

Meanwhile, Coinbase’s existing New York BitLicense and state-level trust charter remain active and unchanged. Coinbase, Inc. continues its operations under NYDFS supervision without disruption.

Other Applicants Pursuing Federal Charters

Coinbase isn’t the only crypto firm seeking this regulatory status. The OCC granted conditional approvals to multiple digital asset companies late last year, including BitGo, Circle Internet Group, Fidelity Digital Assets, Ripple, and Paxos.

Additionally, EDX Markets — backed by Morgan Stanley and Citadel Securities — along with World Liberty Financial, the Trump family’s most significant cryptocurrency initiative, have submitted national trust charter applications.

The federal charter also establishes infrastructure for emerging payment solutions and complementary financial services, targeting both institutional partners and retail users as primary beneficiaries.

While Congress has moved forward with market structure legislation, federal supervision of crypto custody providers has remained inconsistent. This OCC approval fills that regulatory void for institutional services without requiring completed legislative action.