Coinbase Applies for National Trust Charter to Expand Crypto Services and Innovation

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• Coinbase applies for a national trust charter to expand custody and financial services.
  
• The move enables integration of crypto into traditional finance under federal oversight.
  
• CEO Brian Armstrong emphasizes innovation, competition, and secure consumer offerings.

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Coinbase, one of the leading crypto exchanges, has formally applied for a national trust company charter with the Office of the Comptroller of the Currency (OCC). The move is designed to expand its custody services and enable the exchange to introduce new financial products under federal oversight. The announcement follows recent SEC guidance that allows state-chartered trust companies to serve as qualified custodians for crypto assets.

While Coinbase emphasized that it does not aim to become a bank, the national trust charter would allow the company to innovate confidently and securely, offering services beyond custody, including payments and other financial products. By pursuing this charter, Coinbase joins other major crypto firms like Ripple, Circle, and Paxos in seeking broader regulatory recognition.

Bridging Crypto and Traditional Finance

The national trust charter could streamline federal oversight and make it easier for Coinbase to integrate digital assets into traditional finance (TradFi). Coinbase’s leadership believes this step is essential for embedding crypto into mainstream financial systems. CEO Brian Armstrong has actively championed legislative efforts like the crypto market structure bill, advocating for fair competition and criticizing banks pushing restrictive yield rules for crypto users.

Armstrong argues that traditional banks, which are lobbying against certain crypto activities, are less focused on innovation and more on protecting their existing market share. By contrast, Coinbase positions itself as a platform enabling new financial products, such as tokenized equities and prediction markets, under strict federal supervision.

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Expanding Innovation Safely

Coinbase’s application signals the company’s broader ambition to become the “Everything Exchange.” With a national trust charter, the exchange can confidently roll out products while maintaining robust security standards and regulatory compliance. The move could reshape how consumers interact with digital assets, bridging gaps between crypto innovation and established financial infrastructure.

Coinbase’s pursuit of a national trust charter marks a significant step toward integrating crypto with traditional finance, ensuring regulatory oversight, and fostering product innovation. As the exchange expands beyond custody services, it positions itself to compete directly with traditional banks while maintaining consumer-focused offerings.

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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.