Coinbase Applies For National Trust Company Charter

Crypto trade Coinbase has utilized for a National Trust Company Charter with the US Workplace of the Comptroller of the Forex (OCC), becoming a member of a rising variety of US-based crypto firms pursuing the identical license.

“Coinbase is taking a big step in increasing our enterprise capabilities and regulatory oversight past the present framework, paving the best way for innovation and progress in constructing a contemporary monetary system powered by digital belongings,” Coinbase said in a press release on Friday.

Coinbase pursues the license to “bridge the hole” with TradFi

In line with Coinbase, pursuing the license is a part of its technique “to bridge the hole between the crypto economic system and conventional monetary system.” Nonetheless, it has no real interest in altering the core focus of its operations:

“Coinbase has no intention of turning into a financial institution. It’s our agency perception that clear guidelines and the belief of our regulators and prospects allow Coinbase to confidently innovate whereas guaranteeing correct oversight and safety.”

Luke Youngblood, a former Coinbase worker who led the creation of Coinbase staking rewards, explained in a podcast revealed on Friday that the license would allow Coinbase to “provide mainly built-in on-ramp, off-ramp, and not have to make use of accomplice banks on-ramps, off-ramps.”

Coinbase mentioned that approval of the license would enable the trade to develop past custody providers, opening the door to funds and different associated choices below clearer regulatory steerage.

Nonetheless, political commentator Brendan Pedersen added, “Trusts theoretically have extra limitations than different varieties of banks in relation to enterprise actions, however the distinction has blurred over time.”

Former Coinbase exec notes app enchancment

Youngblood mentioned the Coinbase retail utility has improved considerably since he stopped working on the trade in 2022. “After I labored there again in 2022, earlier than I left, it was not that nice. The options, just like the Coinbase debit card, didn’t work very nicely,” Youngblood mentioned.

“You’ll be able to actually inform they’ve employed some high engineering expertise,” Youngblood mentioned.

Associated: AI agents need crypto to operate in financial markets: Coinbase exec

It comes as a number of different crypto firms have additionally not too long ago utilized for the National Trust Charter.

On July 1, stablecoin issuer Circle applied to establish a nationwide belief financial institution within the US. A few days later, Ripple Labs utilized for the same license. 

Ripple Labs CEO Brad Garlinghouse mentioned if the license is approved, it might be a “new (and distinctive!) benchmark for belief within the stablecoin market.”

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