Why are crypto companies applying for bank charters?

Crypto companies are applying for bank charters because a federal license can replace a patchwork of state rules and bring them closer to the core of the US payment system. Almost all are seeking national trust bank charters, not full commercial bank licenses. The approvals and the lawsuit against them are covered in can banks hold crypto.

What is a national trust bank charter for crypto?

A national trust bank is a bank limited to fiduciary and related trust work, such as holding assets for clients. Hogan Lovells notes that the crypto trust banks approved in December 2025 would be uninsured and would not accept deposits. A 2021 OCC interpretive letter allowed national trust companies to offer standalone custody, American Banker reports, which is what makes the charter useful for crypto custody.

There are limits. Davis Wright Tremaine points out that the charter rules out demand deposits and general lending, and it can bring higher capital requirements and stricter supervision than a state license.

Why do crypto firms want bank charters?

Lawyers and analysts cite several reasons:

• One regulator. Firms with state money transmitter licenses can operate under one federal set of standards. Davis Wright Tremaine says a national trust bank can operate nationwide without state rules on entry, offices or marketing. The state system it replaces is explained in state crypto licenses.
• Payment system access. A charter can open the door to a Federal Reserve master account, which gives direct access to core payment rails instead of going through a partner bank. This is not automatic and depends on Fed policy.
• No bank holding company. If the trust bank is not a bank under the Bank Holding Company Act, its parent avoids full Fed holding company supervision.
• Stablecoins. American Banker cites the GENIUS Act's federal framework as a driver. Ripple says its trust bank will manage the segregated reserves backing its RLUSD stablecoin and act as collateral trustee for holders. The law itself is covered in what is the GENIUS Act.

Which crypto companies got bank charters?

On December 12, 2025, the OCC conditionally approved five applications. Two were new banks, First National Digital Currency Bank and Ripple National Trust Bank. Three were conversions of state trust companies into BitGo Bank & Trust, Fidelity Digital Assets and Paxos Trust Company, each as a national association.

Ripple received final approval on October 26, 2026. Earlier efforts went less smoothly. Davis Wright Tremaine notes that Anchorage Digital was the only active crypto national trust bank in late 2024 and had received a consent order in 2022, while two earlier conditional approvals expired unused.

What do critics of crypto bank charters say?

Bank trade groups argue the OCC is stretching trust powers. The ICBA said the agency lacks statutory authority to expand them, and the American Bankers Association warned of regulatory arbitrage, according to Hogan Lovells. Senator Elizabeth Warren has also argued the approvals conflict with the National Bank Act.

Rules differ by country and change often. Check the regulator or a qualified professional for your own situation.