The U.S. Office of the Comptroller of the Currency (OCC) announced it has granted conditional approval for several large institutions operating in the digital asset sector to become national trust banks.
According to the OCC’s statement, a total of five applications, including those from Fidelity Digital Assets, Paxos, and Ripple, were accepted provided they met the specified conditions.
The official statement from the OCC indicated that these applications are subject to the same rigorous review and evaluation standards as all other bank licenses. Each application is examined considering its specific circumstances within the framework of legal and regulatory criteria.
The OCC has granted conditional approval to First National Digital Currency Bank and Ripple National Trust Bank for de novo national trust bank licenses, while approving applications for conversion from state-level trust structures to national trust banks for BitGo Bank & Trust, Fidelity Digital Assets, and Paxos Trust Company. These institutions will join approximately 60 national trust banks under OCC supervision if they meet the necessary requirements.
U.S. Comptroller of the Currency Jonathan V. Gould stated that the inclusion of new candidates in the federal banking system is positive for consumers, the banking sector, and the economy. Gould noted that such initiatives offer consumers new products and services, increase competition, and make the financial system more dynamic and diverse. He added that the OCC will continue to keep its doors open to both traditional and innovative financial service models.
The statement also noted that the U.S. federal banking system comprises more than 1,000 national banks and financial institutions, managing over $17 trillion in assets and exercising administrative authority over over $85 trillion. It was also stated that the federal banking system accounts for approximately 67 percent of banking activity in the United States.
*This is not investment advice.