Coinbase Applies for U.S. Trust Charter to Expand Regulated Operations

Coinbase Global Inc. has applied to the U.S. Office of the Comptroller of the Currency (OCC) for a National Trust Company Charter, a license that would bring part of its crypto business under federal regulation. The application marks another step in Coinbase’s effort to anchor its operations inside a clearer legal framework as U.S. regulators heighten scrutiny of the digital asset industry.

The charter would allow Coinbase to operate as a limited-purpose trust company—subject to the same federal oversight as banks but without engaging in lending or taking deposits. The company said the license would expand its ability to offer payment and custody services while maintaining its focus on crypto assets.

Direct Control Over Fiat Transactions

Coinbase’s current fiat operations rely on partner banks to process deposits, withdrawals, and settlements linked to crypto trading. The trust charter would give the exchange the authority to manage those flows internally, offering more flexibility in how it handles customer funds.

Coinbase said the trust charter will allow it to offer regulated payment and custody services while continuing to operate as a digital asset platform.

Clear regulation and direct oversight allow us to innovate responsibly and securely, Coinbase said in a statement.

Former Coinbase engineer Luke Youngblood, who helped develop the exchange’s staking systems, said a trust charter could simplify Coinbase’s fiat infrastructure.

It would mean Coinbase manages its own fiat rails instead of routing through partner banks, Youngblood said, noting the company’s platform performance has “improved substantially” since 2022.

Rival Crypto Firms Also Seek Federal Trust Charters

Coinbase’s application is part of a growing push by major cryptocurrency companies to obtain federal trust licenses. Circle, the issuer of the USDC stablecoin, filed its charter request in July to operate as a federally regulated trust company, giving it direct authority over U.S. dollar transactions. Ripple Labs followed shortly after, aiming to strengthen compliance and custody capabilities for its payment and stablecoin services.

The licenses are seen as a strategic tool to simplify operations across the United States, avoiding the patchwork of state money transmitter regulations that can slow transactions and increase compliance costs. For institutional clients, a federally regulated charter signals that the company meets rigorous standards for custody, reporting, and operational security—criteria that many banks and investors require before partnering with a crypto firm.

Ripple CEO Brad Garlinghouse described the charter as a “benchmark for credibility in digital payments and stablecoins,” highlighting the role federal oversight plays in legitimizing crypto operations for traditional finance stakeholders. Analysts say that these trust charters could become a competitive differentiator, giving firms direct control over fiat flows while reducing reliance on partner banks.

Coinbase Expands in Europe, Increases Bitcoin Holdings

Coinbase has extended its international operations while adding to its cryptocurrency reserves. The exchange received approval under the EU’s Markets in Crypto-Assets (MiCA) framework through Luxembourg’s financial regulator, allowing it to provide trading, custody, and fiat services across all 27 EU member states in compliance with EU regulations.

In the second quarter of 2025, Coinbase purchased 2,509 Bitcoin, worth around $222 million, bringing its total corporate holdings to 11,776 BTC. This places the company just ahead of Tesla among publicly listed firms with the largest Bitcoin reserves.

The combination of European regulatory approval and significant on-balance-sheet Bitcoin holdings positions Coinbase to operate with greater regulatory clarity while maintaining a strong presence in both domestic and international markets.

Coinbase’s Trust Charter Could Set U.S. Precedent

Coinbase has applied for a National Trust Company Charter from the OCC, aiming to operate parts of its business under federal supervision. If approved, the license would allow the exchange to handle fiat transactions directly and comply with federal regulatory standards, reducing reliance on partner banks.

The charter would create a framework for digital asset firms to provide regulated financial services, potentially shaping how U.S. regulators structure oversight of crypto exchanges and stablecoin operations in the future.

Also Read: Bitcoin Could Reach $135,000 Soon, Says Standard Chartered