Coinbase Seeks Federal Trust Charter for Crypto Services Expansion, Not Banking

Coinbase (COIN) has officially applied for a national trust charter with the U.S. Office of the Comptroller of the Currency (OCC), positioning the crypto exchange for federal regulatory oversight. This strategic move would enable Coinbase to enhance its custody offerings with additional services like payments and settlement, without pursuing a full banking license. Greg Tusar, VP of Institutional Product, clarified that Coinbase has no plans to become a bank, emphasizing that clear regulations and regulatory trust are crucial for innovation and security. Currently, Coinbase operates its regulated custody via Coinbase Custody Trust Company under New York's BitLicense. A federal charter would streamline the launch of new financial services, such as crypto payments, eliminating the need for state-level approvals. This follows similar applications from crypto firms like Circle, Ripple, and Paxos in 2023.