Cryptocurrency exchange in Singapore crypto.com (CRO) announced on Friday its intention to apply for a National Trust Bank charter with the US Office of the Comptroller of the Currency (OCC).
The move aligns Crypto.com with other major companies in the industry, including Coinbase (COIN), Ripple Labs, stablecoin issuer Paxos, and Sony Bank, which also follow similar charters in the country.
What the Credit National Bank Charter Means for Crypto.com
According to the stock exchange official statement In this regard, the application aims to enhance Crypto.com's custody technology and expand customer offerings, which include asset custody and storage across various blockchains and digital asset protocols, such as Cronos.
A National Trust bank charter would establish Crypto.com as a preferred destination for custody services, particularly for digital asset vaults (DATs), exchange-traded funds (ETFs), and other corporate and institutional investors. Chris Marszalek, Co-Founder and CEO of Crypto.com, said:
We are excited to take this next step by applying for a National Trust Bank charter and look forward to continuing to pursue opportunities to provide customers with the trusted services they need.
It is important to note that A National Trust Bank Charter It also allows companies to act as agents, manage assets, and settle transactions, but does not allow them to accept deposits or make loans like traditional banks.
This special purpose charter is particularly attractive for companies aiming to manage stablecoin reserves or other digital assets under a single federal regulator, the OCC, thus avoiding the complexities of licensing from one state to another.
A new era of crypto banking
In a related development, Erebor, backed by Peter Thiel, has taken a partial stake Regulatory approval From OCC to launch, aiming to address the gap left by the collapse of Silicon Valley Bank (SVB).
A source close to Erebor told the Financial Times that the bank aims to be a stable and reliable institution, saying: “We want to be a stable, low-risk, reliable bank that does normal banking things without spoiling everyone with unnecessary risks.”
Erebor will be headquartered in Columbus, Ohio, with an additional office in New York, offering digital-only customer service through a smartphone app and website.
Furthermore, Erebor plans to merge… stablecoins in its operations, in line with the recent repeal of regulations by the Trump administration that prevented banks from participating in stablecoin transactions.
The bank's quick approval reflects its “very conservative business plan,” the source said, stressing that it will not operate as a “foolish, technical cryptocurrency bank.”
As the industry navigates this landscape under a pro-crypto administration, it remains to be seen whether suitors, including Crypto.com, will receive the same level of support as Erebor.
However, it is clear that the cryptocurrency sector needs new banking services after the collapse of Silvergate and Signature Bank.
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