Zerohash, a Digital Asset Infrastructure Provider, Applies for National Trust Bank Charter
In a significant development in the digital asset sphere, Zerohash has announced its application for a national trust bank charter. The move comes as the latest in a long line of attempts by crypto firms to secure trust charters from federal regulators, signaling the increasing integration of stablecoin infrastructure into the mainstream financial system.
Zerohash’s application was filed with the Office of the Comptroller of the Currency (OCC) on Wednesday and is currently one of eight pending applications. This comes as the OCC has recently conditionally approved multiple crypto trust charter applications.
Implications of the OCC Trust Charter
Acquiring an OCC trust charter will enable Zerohash to expand its services, including activities that align with the GENIUS Act, under an official federal framework. Stephen Gardner, Chief Legal and Compliance Officer at Zerohash, stated that the application represents a “natural next step in offering robust global licensing coverage and continuing to expand our product offering.”
National trust bank charters offer crypto firms a pathway to further integrate into the banking system. These charters allow digital asset firms to engage in non-fiduciary activities, such as asset custody, under interpretive letter 1176 authored in 2021 by now-Comptroller of the Currency Jonathan Gould. This includes the settlement, safekeeping, and reporting of customers’ marketable securities, with digital assets included in the OCC’s operating definition of “securities”.
Recent Approvals and Pending Applications
The OCC has recently granted conditional trust charter approvals to several digital asset companies, including Stripe-owned Bridge and Crypto.com. Other notable crypto firms, including Coinbase, Morgan Stanley, Payoneer, and the Trump family’s World Liberty Financial, have trust charter applications currently pending on the OCC website.
Industry Reactions and Future Expectations
The increase in national trust charter applications from crypto firms has elicited varied responses from industry experts. Scott Dawson, CEO of global payments processor DECTA, regards the trend as unsurprising, given the growing interest in digital assets. He commented, “While the industry will inevitably continue to debate the nuances of regulation…the overarching message is undeniable: Stablecoin infrastructure is edging closer to the mainstream of regulated finance.”
Over the past six months, Zerohash has announced partnerships with One Pay and Morgan Stanley to provide digital asset services. Morgan Stanley also submitted its own crypto trust charter to the OCC in February to support the partnership. Despite reports of acquisition talks with Mastercard last fall, Zerohash opted to retain its independence and will not be acquired.
As the digital asset landscape continues to evolve, we can expect additional crypto trust charter applications and approvals from the OCC in the coming weeks and months. This trend underscores the increasing interplay between traditional banking and digital assets, indicating a promising future for this burgeoning industry.
Source: Here
