Crypto Revolution: National Trust Bank Charters Pave the Way for Digital Assets

Ripple and Circle received preliminary approval from a U.S. banking regulator to establish national trust banks, a significant step towards integrating digital assets into the banking system. The Office of the Comptroller of the Currency conditionally approved applications allowing these companies to manage assets but not accept deposits.

In a landmark move for the digital currency world, major crypto entities Ripple and Circle have been granted preliminary approval by a leading U.S. banking regulatory body to create national trust banks. This development could potentially bridge the gap between digital assets and traditional banking systems.

The Office of the Comptroller of the Currency has conditionally sanctioned two new national trust bank charters for these companies, alongside approving applications from BitGo, Paxos, and Fidelity Digital Assets to transition state trust bank charters into national ones. These approvals would empower the companies to handle and secure assets for clients and accelerate payment settlements while prohibiting cash deposit acceptance or loan issuance.

Currently, Anchorage Digital stands as the sole digital asset firm with a national trust bank charter, amidst a total of 60 overseen by the OCC. Despite criticism from traditional banks fearing lax regulatory measures, this move signals a shift in the banking landscape, underlined by President Trump's crypto policy overhaul intentions.

(With inputs from agencies.)