Coinbase wins full US banking approval, but with key restrictions

Coinbase has secured a full national trust bank charter from the Office of the Comptroller of the Currency (OCC), allowing the US cryptocurrency exchange to operate its institutional custody business under direct federal banking supervision.

Summary

• Coinbase secured full OCC charter approval, bringing its institutional crypto custody operations under federal supervision.
• The company plans to transfer its existing New York-regulated custody business over three years gradually.
• Coinbase's national trust charter excludes ordinary retail deposits, traditional lending, and direct stablecoin issuance activities.
• Ripple received comparable federal approval in October, expanding its regulated custody and stablecoin reserve operations.
• Community banking groups continue challenging OCC trust charter policies through litigation filed in October 2026.

According to the OCC's licensing records, Coinbase National Trust Company completed its chartering process on Nov. 6, 2026, following preliminary approval in April. The company announced the completed approval on Nov. 9, ending a process that began with its application in October 2025.

The decision places Coinbase among crypto companies that have secured federal trust bank charters, including Ripple, which received final approval on Oct. 26. However, the new license does not turn Coinbase into a conventional commercial bank or authorize it to accept ordinary retail deposits.

Coinbase gains federal oversight for its custody business

Under the charter, Coinbase National Trust Company can provide fiduciary digital asset custody services, primarily to institutional customers. The company can hold and transfer assets in custody accounts while offering certain transaction services connected to those holdings.

Coinbase already operates a custody business through Coinbase Custody Trust Company, a limited-purpose trust company regulated by the New York State Department of Financial Services. Its new federal charter introduces OCC supervision, with plans to transfer the existing custody business to the national trust entity over three years.

The transition is detailed in the OCC's April approval decision, which sets out the proposed business structure and permitted activities. Coinbase will continue serving institutional clients while transferring custody operations from its New York-regulated entity.

Although the trust bank can facilitate customer access to staking, prime trading and financing services, the OCC's decision specifies that Coinbase affiliates will provide those products. The bank itself will act as an intermediary and will not directly perform the underlying services.

The charter does not authorize the institution to issue stablecoins. Coinbase has previously explained that its application focuses on custody and financial infrastructure, with the company maintaining that it has no plans to engage in fractional-reserve banking.

OCC approval follows months of regulatory review

Coinbase received its preliminary approval on April 2, 2026, after submitting its application six months earlier. As crypto.news previously reported, the decision prompted objections from banking industry groups concerned about federal regulators granting limited banking charters to cryptocurrency companies.

The OCC subsequently required Coinbase to complete its organizational and operational preparations before receiving permission to commence business. Its April decision established capital, liquidity and supervisory requirements for the new institution.

Among those requirements, the trust bank must maintain at least $60 million in Tier 1 capital, with a minimum portion held in eligible liquid assets. The conditions further require liquid assets sufficient to cover 180 days of operating expenses during the bank's first three years.

"We've spent years asking for clear rules and rigorous oversight, and today's approval of our national trust charter puts more of our business behind that commitment," Coinbase Vice Chairman Ryan VanGrack said.

The federal license does not automatically provide Coinbase with direct access to Federal Reserve payment systems. Such access requires a separate process under the Federal Reserve's account access guidelines, which assess eligibility and financial, operational and settlement risks.

Ripple joins Coinbase among federally chartered crypto firms

Coinbase's approval follows Ripple's national trust bank authorization in October, when the payments company secured permission to establish a federally supervised institution supporting its RLUSD stablecoin infrastructure.

Ripple National Trust Bank can manage segregated reserves backing RLUSD, serve as collateral trustee and provide fiduciary digital asset custody. Its existing New York-regulated subsidiary, Standard Custody & Trust Company, remains responsible for issuing the stablecoin.

Several other cryptocurrency firms have pursued similar approvals as the OCC continues reviewing applications for digital asset businesses. The regulator has advanced trust charter applications involving Circle, BitGo, Fidelity Digital Assets and Paxos.

The GENIUS Act, signed into law in July 2025, established a federal regulatory framework for payment stablecoins. However, Coinbase's approved trust bank business plan does not include issuing a stablecoin, distinguishing its proposed operations from institutions seeking direct involvement in stablecoin issuance.

Banking groups challenge OCC's trust charter policy

The Independent Community Bankers of America (ICBA) has opposed the regulator's approach, arguing that crypto firms can obtain federal banking status without meeting certain obligations imposed on traditional insured banks.

On Oct. 2, the association filed a lawsuit in the US District Court for the District of Columbia, challenging the OCC's authority to grant trust charters covering substantial non-fiduciary activities.

"Digital assets held at a crypto firm operating under a national trust charter do not carry those important safeguards," ICBA President and CEO Rebeca Romero Rainey said.

The complaint challenges the OCC's March 2026 chartering rule and related guidance, including Interpretive Letter 1176. It asks the court to find those measures unlawful and overturn the conditional approval granted to Protego Holdings.

The OCC has maintained that national trust banks can perform activities connected to traditional trust company operations, including certain non-fiduciary services. Its final chartering rule took effect on April 1, 2026, before Coinbase received preliminary approval.