Coinbase Pursues US National Trust Charter, Stresses It Won’t Become a Bank

Coinbase, one of the leading exchanges in crypto news, has filed an application with the US Office of the Comptroller of the Currency (OCC) for a National Trust Company Charter. This move signals Coinbase’s intent to expand its blockchain technology offerings, bridge crypto with traditional finance, and operate under stricter federal oversight without converting itself into a traditional or full-service bank.

Coinbase Eyes Broader Gateways for Blockchain and Crypto Pur

Coinbase states that the trust charter will allow it to:

• Reduce reliance on third-party banks for fiat on-ramps and off-ramps, providing seamless crypto-to-fiat and fiat-to-crypto payment flows directly through its blockchain-powered platform.
• Expand beyond its current regulated custody services to launch new financial products, including payments, settlements, and asset management all compliant with US federal crypto pur regulations.
• Create a stronger regulatory environment that supports innovation in blockchain technology and crypto finance.

Luke Youngblood, Coinbase’s former staking product lead, explained the trust license would allow the platform to offer “built-in on-ramp, off-ramp, and no longer have to use partner banks,” further solidifying its vision of a tightly integrated crypto pur ecosystem.

Not a Bank But a Regulated Financial Gateway

Despite expanding capabilities, Coinbase repeatedly clarified that it does not intend to become a commercial bank:

“Coinbase has no intention of becoming a bank. We believe clear rules and the trust of our regulators and customers enable Coinbase to confidently innovate while ensuring proper oversight and security,” said Greg Tusar, Vice President of Institutional Product.

A national trust charter, unlike a standard bank license, does not allow lending or deposit services, meaning Coinbase will not become a deposit-holding institution. Instead, it empowers fintech and crypto companies to operate digital asset custody, settlements, and related trust services at a national scale, accelerating the adoption of blockchain technology without the full banking burden.

Industry Trends: Circle, Ripple, and the Blockchain Push

Coinbase joins a growing list of blockchain technology companies seeking federal trust charters:

• Stablecoin operator Circle, as well as industry giant Ripple Labs, recently applied for similar licenses to cement their crypto pur business in the financial mainstream.
• Ripple’s CEO Brad Garlinghouse noted the license would become a “new (and unique!) benchmark for trust in the stablecoin market” if approved, representing increasing regulatory engagement for digital assets in the US.

Platform Improvements and Market Expansion

Coinbase’s platform improvements since 2022 such as better debit card integration, streamlined app functionality, and strategic partnerships with Shopify and USDC underscore its commitment to innovating at the intersection of blockchain and traditional finance.

As one of the largest digital asset custodians globally, Coinbase now manages custody for $425 billion in crypto assets, serving major US banks, wealth managers, and institutional investors who are rapidly adopting blockchain and crypto pur solutions.

Coinbase’s trust charter move marks a pivotal step in the evolution of blockchain-powered finance. Rather than becoming a bank, it seeks to enable broader access, innovation, and regulatory clarity in digital asset markets poised to shape the future of crypto news, blockchain technology, and mainstream adoption for years to come.