Coinbase Global has secured conditional approval from banking regulators for a national trust company charter, a development that could boost the cryptocurrency exchange’s appeal to large institutional investors. The Office of the Comptroller of the Currency’s conditional clearance would allow Coinbase to operate as a federally regulated crypto custodian, marking a significant step in its custody offerings. This move could lay the groundwork for new products and services tied to regulated crypto custody. However, Coinbase emphasized that the conditional approval does not imply the company will become a commercial bank, stating it would not accept retail deposits or engage in fractional reserve banking.
Executives noted that federal oversight would bring greater consistency and a clear framework for future products, including payments, within the custody business. The news underscores a broader regulatory shift as the U.S. has pursued a relatively crypto-friendly approach in recent years, with regulators easing prior curbs and dialing back enforcement actions following the re-election of President Donald Trump. The conditional approval highlights Coinbase’s strategy to expand access for institutional buyers while strengthening its custody infrastructure.
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