Coinbase Pursues U.S. National Trust Charter to Expand Digital Finance – But Stresses It’s “Not Becoming a Bank”
Coinbase Seeks National Trust Company Charter Amid Regulatory Push
Crypto exchange Coinbase is taking a major regulatory step by applying for a National Trust Company Charter with the U.S. Office of the Comptroller of the Currency (OCC). The move places the exchange among a growing list of U.S.-based crypto firms seeking this specialized license.
In a statement released Friday, Coinbase said the charter marks a pivotal step toward strengthening its compliance framework and expanding its financial services, while continuing to innovate within the digital asset space.
“Coinbase 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,” the company stated.
Bridging the Gap Between Crypto and Traditional Finance
According to Coinbase, the new license aligns with its strategy to bridge the gap between the crypto economy and traditional finance (TradFi) – but without transforming into a traditional bank.
“Coinbase 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,” the company clarified.
Former Coinbase engineer Luke Youngblood, who helped design the exchange’s staking rewards system, said in a podcast that the license could enable Coinbase to integrate “built-in on-ramps and off-ramps,” reducing reliance on partner banks.
If approved, the charter could expand Coinbase’s capabilities beyond crypto custody, potentially covering payments and other digital financial services under clearer regulatory guidelines.
However, industry observers note that trust companies face stricter operational limitations than full-service banks. As political analyst Brendan Pedersen pointed out, “Trusts theoretically have more limitations than other types of banks when it comes to business activities, but the distinction has blurred over the years.”
Former Coinbase Executive Praises App Improvements
Youngblood also praised the evolution of Coinbase’s retail app since leaving the company in 2022.
“When I worked there back in 2022, before I left, it was not that great. The features, like the Coinbase debit card, didn’t work very well,” he said. “You can really tell they’ve hired some top engineering talent.”
The charter pursuit comes as other major crypto firms follow similar paths. In July 2025, Circle applied for a national trust bank license, followed days later by Ripple Labs, whose CEO Brad Garlinghouse said approval would mark “a new and unique benchmark for trust in the stablecoin market.”
Outlook: A New Phase in Crypto-Regulated Finance
Coinbase’s move underscores a broader industry trend toward deeper integration with U.S. financial oversight, as crypto companies seek legitimacy and regulatory clarity. While not transforming into a bank, Coinbase’s trust charter could reshape how it delivers blockchain-powered financial services under a federally supervised structure.
