Coinbase Global, a notable player in the cryptocurrency exchange market, announced on Thursday that it has obtained conditional approval from a pivotal federal regulator to operate as a bank. This significant step from the Office of the Comptroller of the Currency (OCC) enhances Coinbase’s credibility, particularly among institutional clients, as highlighted by Greg Tusar, the firm’s vice president of Institutional Product.
Currently, Coinbase operates under a limited-purpose trust charter granted by the New York Department of Financial Services, enabling it to manage the custody of digital assets for its institutional clientele through Coinbase Prime. The acquisition of a federal charter, Tusar noted, could considerably widen Coinbase’s market reach. He stated, “We’re the custodian to over 80% of the world’s digital asset ETFs. However, many other asset managers and hedge funds prefer to engage with an entity that possesses this kind of charter.”
This development is timely, as the cryptocurrency sector has increasingly integrated with mainstream finance during the latter part of President Trump’s administration. Last year, several other cryptocurrency firms also received conditional approvals from the OCC for similar charters, including BitGo, Circle Internet Group, Fidelity Digital Assets, Ripple, and Paxos. Prominent financial institutions such as Morgan Stanley and Citadel Securities-backed EDX Markets, along with significant ventures like World Liberty Financial, have also expressed interest in obtaining national trust charters.
Coinbase’s application for a national trust charter, submitted in October, must fulfil various procedural requirements before achieving final approval. These include conducting its initial board meeting, establishing bylaws, setting up payment infrastructures, and clearing a pre-opening examination by the OCC.
As of June 2025, Coinbase’s institutional segment managed assets worth approximately $245.7 billion, which accounts for about 7% of the entire cryptocurrency market, according to its charter application. This growing institutional interest points to the potential for further legitimising and expanding the cryptocurrency landscape.
Coinbase’s strides toward becoming a bank could have far-reaching impacts on both the company and the cryptocurrency industry, facilitating a more robust framework for digital asset management and potentially attracting a broader client base.
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