Crypto exchange Coinbase has taken steps to apply for a National Trust Company Charter with the US Office of the Comptroller of the Currency (OCC), as part of a broader trend among American crypto firms seeking this license.
“Coinbase is taking a significant step in expanding our business capabilities and regulatory oversight beyond the existing framework, paving the way for innovation and growth in building a modern financial system powered by digital assets.”
“Coinbase es un paso significativo en la expansión de nuestras capacidades comerciales y supervisión regulatoria más allá del marco existente, allanando el camino para la innovación y el crecimiento en la construcción de un sistema financiero moderno impulsado por activos digitales.”
Coinbase’s Strategy to Connect Crypto with Traditional Finance
According to the company, obtaining this license is intended to help bridge the gap between the cryptocurrency world and traditional finance while clarifying that it does not aim to become a conventional bank:
“Coinbase has no intention of becoming a bank. It is our firm belief that clear rules and the trust of our regulators and customers enable Coinbase to confidently innovate while ensuring proper oversight and security.”
“Coinbase no tiene la intención de convertirse en un banco. Creemos firmemente que las reglas claras y la confianza de nuestros reguladores y clientes permiten a Coinbase innovar con confianza mientras se asegura la supervisión y la seguridad adecuada.”
Luke Youngblood, a former member of Coinbase who was integral in establishing the staking rewards program, explained in a recent podcast that this new license would allow Coinbase to strengthen its services by providing integrated on-ramps and off-ramps without the need for intermediary banks.
Source: Coinbase
With the authorization of the National Trust Charter, Coinbase aims to extend its offerings beyond just custody services into areas like payments and additional financial products, under clearer regulatory frameworks.
Yet, political analyst Brendan Pedersen remarked, “Trusts theoretically have more limitations than other types of banks when it comes to business activities, but the distinction has blurred over the years.”
Improvements Noticed in Coinbase’s App
Youngblood pointed out that the Coinbase mobile application has significantly enhanced since he exited the company in 2022, stating, “When I worked there back in 2022, before I left, it was not that great… You can really tell they’ve hired some top engineering talent.”
“Cuando trabajaba allí en 2022, antes de irme, no era tan bueno… Realmente puedes notar que han contratado a algunos de los mejores talentos de ingeniería.”
This movement comes as other crypto firms are also pursuing similar charters. For instance, on July 1, stablecoin issuer Circle filed for a national trust bank charter, followed closely by Ripple Labs making the same request shortly afterward.
Ripple CEO Brad Garlinghouse remarked that if their license is granted, it would set a “new (and unique!) benchmark for trust in the stablecoin market.”
“Un nuevo (¡y único!) punto de referencia para la confianza en el mercado de stablecoins.”
