Five digital asset companies received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to become federally chartered banks on Friday, a major step toward placing U.S. dollar stablecoin issuers under federal regulatory oversight.
Blockchain companies Ripple and Circle’s (CRCL) first national digital currency bank are also on the list, which also includes BitGo, Fidelity Digital Assets and Paxos, all of which have previously operated under state charters.
The OCC is the only federal agency to grant bank and trust licenses, and the surge in approvals could mark a major turning point for the crypto banking industry. Since President Donald Trump’s administration took office, regulators led by his appointee Jonathan Gould have shifted from being resistant to cryptocurrencies to being friendly towards them.
“The OCC will continue to provide a path forward for traditional and innovative approaches to financial services to ensure that the federal banking system keeps pace with financial developments and supports the modern economy,” Gould said in a statement.
If the newly approved trust banks meet the agency’s expectations, they will permanently join the approximately 60 regulated institutions with such licenses that allow for trust activities, including custody.
