Five digital asset companies on Friday received conditional approvals to become federally chartered banks from the Office of the Comptroller of the Currency (OCC), in a major step to bring issuers of US dollar stablecoins under federal regulatory oversight.
Blockchain firm Ripple and Circle’s (CRCL) first national digital currency bank is on the list, which also includes BitGo, Fidelity Digital Assets and Paxos, each of which previously operated under state charters.
The OCC is the only federal agency that authorizes banks and trusts, and this increase in approvals potentially marks a major turning point in crypto banking. Since the arrival of President Donald Trump’s administration, the regulator, led by his appointee, Jonathan Gould, has moved from a stance of resistance to cryptocurrencies to a friendly approach.
“The OCC will continue to provide a path for traditional and innovative approaches to financial services to ensure the federal banking system keeps pace with the evolution of finance and supports a modern economy,” Gould said in a statement.
If the newly approved trust banks can meet the agency’s expectations, they will permanently join about 60 regulated institutions with such charters, which allow trust activities, including custody.
