Coinbase Global has received conditional approval from banking regulators for a national trust charter, the company said on Thursday, a decision that could bolster the appeal of the top U.S. cryptocurrency exchange to large institutional investors.
The United States has taken a more crypto-friendly stance since the election of President Donald Trump, with regulators easing previous restrictions and reducing enforcement measures.
Full approval from the Office of the Comptroller of the Currency would allow Coinbase to operate as a federally regulated cryptocurrency custodian.
“Federal supervision … will bring consistency and uniformity to our custody activity and create a foundation for new products – including payments and related services,” wrote Greg Tusar, Coinbase Institutional’s co-head, in a blog on Coinbase’s website.
The OCC’s conditional approval does not mean Coinbase will become a commercial bank, the company clarified in the blog, adding that it will not take retail deposits or engage in fractional reserve banking.
Earlier this year, Crypto.com also received conditional OCC approval for a national trust bank charter.
