Crypto.com Seeks National Trust Bank Charter to Support Its Custody Services
Crypto.com has filed an application for a national trust bank charter with the Office of the Comptroller of the Currency (OCC).
The filing is the latest step in Crypto.com’s regulatory compliance and customer protection efforts. The company said this in a Friday (Oct. 24) press release.
The move will advance Crypto.com’s custody technology and related offerings. These offerings include custody and staking of assets. The services span various blockchains and digital asset protocols. It will position the company as a federally regulated service provider. The provider will offer custody services to corporate and institutional investors, according to the release.
“Building the Crypto.com product and service portfolio through regulated and secure offerings has been our focus since day one,” Crypto.com co-founder and CEO Kris Marszalek said in the release. “We are excited to take this next step by filing for a national trust bank charter and look forward to continuing to pursue opportunities to provide customers with the trusted services they require.”
In July, PYMNTS reported that several FinTechs applied to the OCC for national trust bank charters to expand their scale and scope. Should the applications be approved, these charters would allow the firms to sidestep the piecemeal approach. They could avoid obtaining licenses state by state or relying on correspondent banking for cross-border money movement.
On Oct. 7, PYMNTS reported that cryptocurrency firms are also seeking legitimacy through the charter process. For example, Circle and Ripple have each filed for national trust bank charters with the OCC. These trust charters would allow them to hold customer assets. Additionally, they can manage stablecoin reserves and access the Fed’s payment system directly.
When the OCC announced on Oct. 15 that it conditionally approved a de novo national bank charter application for Erebor Bank, Comptroller of the Currency Jonathan V. Gould said that the move demonstrates his commitment to “a dynamic and diverse federal banking system.” It also serves as proof that the OCC under his leadership “does not impose blanket barriers to banks that want to engage in digital asset activities.”
Erebor Bank is a new national bank focused on technology firms and ultra-high-net-worth clients using virtual currencies.
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