Coinbase has received conditional approval from the Office of the Comptroller of the Currency for a national trust company charter.
The approval is not final and, at time of writing, comes with conditions that must be met before full authorization is granted. For now, it allows the company to move forward with its regulatory requirements while preparing to expand its custody services under federal oversight.
The conditional approval outlines a number of steps the exchange must complete, including strengthening compliance systems, hiring key personnel, and undergoing regulatory reviews. The OCC also requires the company to demonstrate its ability to manage risk, protect customers’ assets, and follow anti-money laundering rules before granting it full approval.
Paul Grewal, the chief legal officer of Coinbase, confirmed that the company will not operate under the charter until final approval is secured. He explained that this phase gives Coinbase the opportunity to refine its plans and expand its services in ways that support the growth of the crypto industry.
Coinbase CLO, Paul Grewal, Source: Law.com
If the company is finally approved, the charter would allow the exchange to operate as a non-insured national trust company. This means the firm could hold digital assets on behalf of clients but would not be permitted to take deposits or issue loans like a traditional bank. Coinbase first applied for the charter in October, joining other crypto firms like Ripple to seek federal approval.
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Growing Demand for Regulated Custody and Coinbase’s Goal
As big investors and institutions move into the digital asset space, the need for secure and regulated custody solutions has become more important.
For Coinbase, the move is also part of a broader strategy to reduce reliance on trading fees, which can fluctuate with market conditions. Custody services offer a more stable source of revenue, especially as the company already safeguards assets for several U.S. spot bitcoin exchange-traded funds. Looking ahead, the exchange sees additional opportunities beyond custody, particularly in payment
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