The U.S. Office of the Comptroller of the Currency (OCC) has conditionally approved applications from major cryptocurrency companies, including Ripple, Circle, Paxos, BitGo, and Fidelity Digital Assets, to establish and convert to national trust banks. This indicates the rapid convergence between traditional finance and the digital asset industry.
On Friday (local time), the OCC approved the conversion of three existing state-level trust companies into federally regulated trust banks and conditionally approved Ripple and Circle's applications to establish new trust banks. This approval marks a rare instance of banking access for the digital asset industry, demonstrating the gradual acceptance of new financial technologies by US financial regulators.
“New entrants into the federal banking system are good for consumers, the financial industry, and the entire economy,” said Jonathan Gould, the Office of the Comptroller of the Currency. “The OCC will provide an institutional pathway for diverse financial approaches, both traditional and innovative, to thrive in the modern economy.”
This decision goes beyond simply expanding the scope of approvals; it also has implications for the business models pursued by each company. Most plan to provide digital asset custody services to customers through approved trust banks. Paxos, in particular, explained that its platform will enable companies to issue, store, securely trade, and settle digital assets.
Meanwhile, Ripple, despite issuing its own US dollar-pegged stablecoin, RLUSD, has stated that "trust banks will not be the issuers of stablecoins." This is interpreted as a different regulatory strategy compared to Circle's USDC.
In addition to the five companies that received OCC approval, cryptocurrency exchange Coinbase applied for a national trust bank license in October of last year, but drew a clear line, stating that it “has no intention of becoming a bank.”
This announcement is seen as part of a trend toward cryptocurrency companies establishing trust within the US financial regulatory system and exploring new growth avenues. Incorporating into the federally supervised trust banking system provides a clearer legal basis for business operations and financial stability.
🔎 Market Interpretation
With major Web3 companies like Ripple and Circle becoming officially recognized as financial institutions, the digital asset market is expected to accelerate its convergence with institutional finance. Digital asset services will be integrated with traditional banking infrastructure, potentially stimulating the influx of institutional investors.
💡 Strategy Points
The establishment and conversion of a trust bank serves as an institutional cornerstone for business expansion, including asset custody and stablecoins.
Ripple's "non-issuance" stance surrounding RLUSD is a stepping stone to minimize regulatory risk in the US.
If the OCC's forward-looking stance is repeated, it is expected that more Web3 companies will enter the banking industry in the future.
📘 Glossary
- OCC (Office of the Comptroller of the Currency): Federal banking supervisory agency under the U.S. Treasury Department
- Trust Bank: A bank that performs specialized financial services such as asset custody, testamentary trusts, and fund management.
- RLUSD: A US dollar-based stablecoin issued by Ripple
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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