Coinbase Applies for National Trust Charter to Expand Custody and Payment Services

Coinbase, one of the world’s largest cryptocurrency exchanges, has applied for a national trust charter with the Office of the Comptroller of the Currency (OCC). This move places the company alongside other major crypto firms like Ripple, Circle, and Paxos that have sought similar licenses, signaling a continued push for deeper integration between crypto and traditional finance.

The exchange announced the application in a recent blog post, describing it as a significant milestone in its efforts to broaden business operations and strengthen regulatory compliance. 

The national trust charter, if approved, would allow Coinbase to operate under a federal framework rather than being limited to state-level oversight. Currently, the company’s custody operations are regulated by the New York Department of Financial Services (NYDFS).

A Strategic Expansion Amid Regulatory Shifts

Coinbase’s decision comes shortly after the U.S. Securities and Exchange Commission (SEC) released new guidance enabling state-chartered trust companies to act as qualified custodians for digital assets. By pursuing a national trust charter, the exchange aims to extend its reach and enhance its regulatory standing while developing new financial products.

Despite some criticism from traditional banking associations—who argue that crypto firms could threaten their operations—Coinbase emphasized that it has no plans to become a bank. Instead, the company stated that the charter will allow it to “confidently innovate” under strict federal oversight. The move is expected to help Coinbase expand beyond digital asset custody into new areas such as payments and related financial services.

Ripple, Circle, and Paxos have faced similar resistance from banking groups concerned about competition and regulatory overlap. Still, Coinbase believes the industry’s evolution makes it necessary to bridge the gap between digital and traditional finance, or “TradFi.”

Coinbase Paving the Way for Broader Innovation

Coinbase has previously declared its goal of becoming the “Everything Exchange,” with plans to introduce tokenized equities, prediction markets, and new yield-generating services. The company stated that an OCC charter would streamline oversight for these upcoming offerings, ensuring they meet federal standards while maintaining innovation.

CEO Brian Armstrong remains a prominent advocate for clearer crypto regulations in the US. He has consistently supported the crypto market structure bill currently under discussion in Congress, arguing that digital assets are already deeply embedded in the financial ecosystem. 

Armstrong also criticized major banks lobbying for yield restrictions under the proposed CLARITY Act, saying they are “just mad that they’re losing” and need “better products, not another bailout.”

If approved, the national trust charter could mark a pivotal step for Coinbase—solidifying its position as a key player in the convergence of crypto and traditional financial services.