Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Crypto.com receives preliminary authorization for federally regulated cryptocurrency custodian bank in the U.S.
The national trust charter institution aims to unify custody services within a single framework under federal supervision.
(Jesse Hamilton/Coindesk)
Key points:
- Crypto.com has obtained conditional approval in the U.S. to set up Foris Dax National Trust Bank, allowing for the enhancement of custody and digital asset services under federal regulation.
- The national charter aims to unify custody services within a single framework overseen by federal authorities.
- Crypto.com is among several companies, including BitGo, Circle, Ripple, and Paxos, that have recently received conditional approvals for national trust bank charters.
Crypto.com announced it has received conditional authorization from the U.S. Office of the Comptroller of the Currency (OCC) to create a national trust bank, paving the way for the exchange to broaden its custody services under federal oversight.
The proposed Foris Dax National Trust Bank, operating under the name Crypto.com National Trust Bank, would function as a limited-purpose national trust bank. It will not accept deposits or grant loans, focusing instead on providing services such as custody, staking, and trade settlement for digital assets, including those on its own Cronos blockchain.
Related Posts
STORY CONTINUES BELOWDon’t miss another story.Subscribe to the State of Crypto Newsletter today. See all newslettersSign me up
While Crypto.com currently operates a qualified custodian, Crypto.com Custody Trust Co., regulated by New Hampshire’s banking department, the OCC charter will bring its institutional services under a unified federal framework.
This is significant for issuers of exchange-traded funds (ETFs), asset managers, and other institutional clients, who often favor custodians with federal oversight, as this can simplify compliance and operational procedures.
The national charter provides that comprehensive structure, albeit limited to trust services and not traditional banking.
Crypto.com submitted its application to the OCC in October. Although conditional approval is not definitive, it represents a noteworthy advancement. Recently, Striple’s stablecoin company Bridge achieved initial approval to establish a national trust bank as well.
These approvals position the firms within an expanding group of crypto entities aiming to operate within a federal framework. In December, BitGo, Circle, Ripple, Paxos, and Fidelity Digital Assets all received similar conditional approvals.
