{ "id": 50577, "date": "2025-10-04T10:22:14", "date_gmt": "2025-10-04T03:22:14", "guid": { "rendered": "https:\/\/hbbgroup.net\/coinbase-goes-after-national-trust-charter-but-dont-call-it-a-bank\/" }, "modified": "2025-10-04T10:22:14", "modified_gmt": "2025-10-04T03:22:14", "slug": "coinbase-goes-after-national-trust-charter-but-dont-call-it-a-bank", "status": "publish", "type": "post", "link": "https:\/\/hbbgroup.net\/en_us\/coinbase-goes-after-national-trust-charter-but-dont-call-it-a-bank\/", "title": { "rendered": "Coinbase goes after National Trust Charter \u2014 But don\u2019t call it a bank" }, "content": { "rendered": "
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Coinbase said seeking the license is part of its broader effort to bridge the gap between crypto and traditional finance. <\/p>\n

\"Coinbase<\/picture><\/div>\n
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Crypto exchange Coinbase has applied for a National Trust Company Charter with the Office of the Comptroller of the Currency (OCC), joining a growing number of US-based crypto companies pursuing the same license.<\/p>\n

\u201cCoinbase is taking a significant step in expanding our business capabilities and regulatory oversight beyond the existing framework, paving the way for innovation and growth in building a modern financial system powered by digital assets,\u201d Coinbase said<\/a> in a statement on Friday.<\/p>\n

Coinbase pursues the license to \u201cbridge the gap\u201d with TradFi<\/h2>\n

According to Coinbase, pursuing the license is part of its strategy \u201cto bridge the gap between the crypto economy and traditional financial system.\u201d However, it has no interest in changing the core focus of its operations:<\/p>\n

\u201cCoinbase has no intention of becoming a bank. It is our firm belief that clear rules and the trust of our regulators and customers enable Coinbase to confidently innovate while ensuring proper oversight and security.\u201d<\/p><\/blockquote>\n

Luke Youngblood, a former Coinbase employee who led the creation of Coinbase staking rewards, explained<\/a> in a podcast published on Friday that the license would enable Coinbase to \u201coffer basically built-in on-ramp, off-ramp, and no longer have to use partner banks on-ramps, off-ramps.\u201d<\/p>\n

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Source: <\/em>Coinbase<\/em><\/a><\/figcaption><\/figure>\n

Coinbase said that approval of the license would allow the exchange to expand beyond custody services, opening the door to payments and other related offerings under clearer regulatory guidance.<\/p>\n

However, political commentator Brendan Pedersen added<\/a>, \u201cTrusts theoretically have more limitations than other types of banks when it comes to business activities, but the distinction has blurred over the years.\u201d<\/p>\n

Former Coinbase exec notes app improvement<\/h2>\n

Youngblood said the Coinbase retail application has improved significantly since he stopped working at the exchange in 2022. \u201cWhen I worked there back in 2022, before I left, it was not that great. The features, like the Coinbase debit card, didn\u2019t work very well,\u201d Youngblood said.<\/p>\n

\u201cYou can really tell they\u2019ve hired some top engineering talent,\u201d Youngblood said.<\/p>\n

Related: <\/strong><\/em>AI agents need crypto to operate in financial markets: Coinbase exec<\/strong><\/em><\/a><\/p>\n

It comes as several other crypto companies have also recently applied for the National Trust Charter.<\/p>\n

On July 1, stablecoin issuer Circle applied to establish<\/a> a national trust bank in the US. A couple of days later, Ripple Labs applied for the same license<\/a>.\u00a0<\/p>\n

Ripple Labs CEO Brad Garlinghouse said if the license is approved<\/a>, it would be a \u201cnew (and unique!) benchmark for trust in the stablecoin market\u201d<\/p>\n

Magazine: <\/strong><\/em>Hong Kong isn\u2019t the loophole Chinese crypto firms think it is<\/strong><\/em><\/a><\/p>\n