U.S. banking regulators have taken a major step toward bringing digital asset companies into the mainstream financial system, approving several crypto firms to establish federally chartered trust banks. The Office of the Comptroller of the Currency said Friday that five companies received conditional approval to move forward.
The move is among the clearest indications yet that federal regulators are willing to integrate parts of the crypto industry into traditional banking oversight.
Ripple and Circle were granted permission to begin setting up national trust banks, a type of charter that permits firms to safeguard assets and provide limited banking functions. The institutions are, however, not allowed to accept deposits from the public or make loans, keeping their scope narrower than that of full-service banks.
The companies now have up to 18 months to raise sufficient capital, hire qualified staff, and put regulatory controls in place before the OCC conducts a final review.
Historically, national trust charters have been used by asset management firms and insurance companies. In recent years, however, crypto firms have increasingly viewed them as a way to gain regulatory clarity and reduce reliance on third-party banks and custodians. Operating under a single federal framework can also eliminate the need to comply with dozens of separate state-level rules.
In addition to Ripple and Circle, the OCC approved Paxos, BitGo, and Fidelity Digital Assets to convert existing state-chartered trust companies into national ones. For these firms, federal status offers consistency and could simplify operations across state lines.
The approval for Paxos specifically allows the company to issue stablecoins under federal supervision. Ripple’s charter application, on the other hand, makes clear that its USD-backed stablecoin, RLUSD, will not be issued through the newly proposed bank.
Industry executives argue that federal oversight enhances credibility, particularly for institutional clients that want stronger assurances around asset safety and compliance. Stablecoin issuers say national supervision helps distinguish them from rivals operating in less regulated environments and reassures corporate partners that their products meet high standards.
The move comes as crypto companies seek broader acceptance in Washington and on Wall Street. The sector has seen a wave of high-profile public market activity this year. Circle went public in June, with shares climbing sharply since its debut. Trading firm eToro listed in May, while blockchain infrastructure firm tZero Group has said it is preparing for an initial public offering in 2026.
Ripple, however, has said it does not intend to go public, focusing instead on expanding its regulated presence within the financial system.
The deepening footprint of crypto into mainstream finance is likely to be seen as additional proof by firms like Coinbase Global Inc. (NASDAQ: COIN) that the industry is poised for explosive growth around the world.
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