Coinbase receives approval to become a chartered trust bank

Coinbase receives approval to become a chartered trust bank

The new status lets the company handle payments and custody services.

Coinbase has received approval from the US Office of the Comptroller of Currency to become a nationally chartered trust bank, the crypto company announced. The designation is more limited than a full bank charter, so Coinbase won't be able to handle regular deposits or grant loans. However, the new status will allow it to conduct payments and custody services, and expand its stablecoin business.

"This is an important step forward for Coinbase and the broader crypto industry," the company said in a press release. "Coinbase has always pursued clear, consistent and best-in-class regulatory oversight that will move the financial industry, and American leadership in digital assets forward."

Other digital asset companies have sought to become trust charters, including Block and Wise, but only Circle Internet Group, Ripple and now Coinbase have been successful. Coinbase says it's the world's largest crypto custodian, and recently partnered with Citigroup to do stablecoin-to-currency conversions.

The company's past is far from squeaky-clean, though. In 2022 and 2023, the SEC sued Coinbase over the illegal sales of unregistered securities and alleged violations of securities laws, respectively. In 2023, the company settled with the state of New York for $100 million over violations related to money transmitting and other irregularities. Last year, the company was hacked and the perpetrators demanded $20 million to keep the information private.