The Office of the Comptroller of the Currency Approves Digital Asset Firms for National Trust Bank Charters
The Office of the Comptroller of the Currency (OCC) has conditionally approved five digital asset firms for de novo national trust bank charters. Among the approved firms are Circle, Ripple, and Paxos, according to an announcement made on Friday.
Conditional Approvals and Statements by CEOs
Circle’s First National Digital Currency Bank and Ripple National Trust Bank received conditional approval for national trust charters, while Paxos Trust Co., BitGo Bank & Trust, and Fidelity Digital Assets’ state charters will be converted to national ones. Paxos CEO Charles Cascarilla expressed excitement about the regulatory oversight, stating, “This will enable customers to innovate, incubate, and grow digital asset businesses safely and seamlessly within the US.”
Circle CEO Jeremy Allaire also welcomed the charter move, emphasizing the firm’s commitment to trust and compliance. Allaire stated, “This important milestone will give the world’s leading institutions greater clarity and confidence to build on Circle’s platform as stablecoins and blockchain technology move rapidly into the mainstream.”
OCC’s Perspective and Industry Impact
The OCC applied rigorous review and standards to all charter applications, ensuring consumer protection and industry growth. Comptroller of the Currency Jonathan Gould highlighted the benefits of new entrants into the federal banking sector, stating, “They provide access to new products, services, and sources of credit to consumers, and ensure a dynamic, competitive, and diverse banking system.”
In a speech to the Blockchain Association, Gould emphasized the importance of allowing national trusts to engage in nonfiduciary custody activities, promoting innovation and diversity in the banking system.
Industry Response and Future Outlook
The approval of these digital asset firms marks a significant development in the crypto banking sector. Anchorage Digital Bank, the first federally chartered crypto bank, praised the new approvals, setting a standard for compliance and innovation in the industry.
However, not all industry stakeholders share the same enthusiasm. Greg Baer, CEO of the Bank Policy Institute, raised concerns about the adequacy of OCC’s outlined requirements for the approved applicants, calling for more transparency and public understanding of the decision-making process.
Conclusion and References
Ripple CEO Brad Garlinghouse criticized anti-innovation bank lobbyists and hailed the conditional approval of their trust bank charter as a milestone in stablecoin compliance. Garlinghouse emphasized transparency and responsible management of the firm’s token, setting a new standard in the market.
For more information on the OCC’s approval of national trust bank charters for digital asset firms, refer to the source link here.
