Coinbase has received conditional approval from the U.S. Office of the Comptroller of the Currency for a national trust company charter, marking a significant step toward federally regulated crypto custody.

What It Means

The conditional green light sets out requirements Coinbase must meet before receiving a full charter, including building compliance systems, hiring key personnel, and passing regulatory reviews. If finalized, the charter would allow Coinbase to operate a non-insured national trust company - holding digital assets on behalf of clients while being barred from taking deposits or making loans.

"We still need final approval... our business will not operate under an OCC charter until we have that final approval," said Paul Grewal, Coinbase's chief legal officer.

Why It Matters

Coinbase already serves as custodian for several U.S. spot bitcoin ETFs. A federal charter would provide institutional clients with stronger regulatory assurances than state licenses alone, addressing a key concern for pension funds and large investors seeking crypto exposure through regulated channels.

The move is part of a broader industry trend. Coinbase first applied in October alongside Ripple, and Citadel-backed EDX Markets has since filed for a similar structure. Greg Tusar, Coinbase Institutional's co-CEO, said federal oversight will "bring consistency and uniformity to our custody business."

Beyond Custody

Coinbase sees the charter as a gateway to new revenue streams. "The big opportunity going forward would be payments... we think we'll be able to offer a much wider range of products and services than ever before," Grewal added. The company clarified it would not become a commercial bank or engage in fractional reserve banking.