OCC Approves Circle, Ripple, and Others to Launch National Crypto Banks

OCC Approves Circle, Ripple, and Others to Launch National Crypto Banks

The US Office of the Comptroller of the Currency (OCC) has made a significant move in the financial landscape by allowing several digital asset companies, including Circle and Ripple, to establish national trust banks.

Key Takeaways:

The OCC has granted conditional approval to five crypto firms, such as Circle and Ripple, to create national trust banks.
These charters provide digital asset companies a unified federal regulatory framework, simplifying compliance compared to state regulations.
Paxos has received clearance to issue stablecoins with federal oversight, while Ripple's charter specifies it will not issue its US dollar-pegged RLUSD through the bank.

This announcement, made on Friday, represents a bold initiative by the Trump administration to integrate cryptocurrency more thoroughly into the regulated banking system.

Conditional Approval for National Trust Banks

Circle and Ripple are among the firms that have received conditional approval to develop national trust banks, a special banking charter that enables them to manage assets and provide certain banking services without accepting deposits or offering loans.

The companies will have 18 months to raise the necessary capital, hire staff, and construct compliant operational systems before they undergo a final review by the OCC.

Historically, trust charters have been associated with asset managers and insurers, but the crypto industry is increasingly pursuing these charters to gain regulatory backing and streamline their operations.

Additionally, the OCC has authorized BitGo, Fidelity Digital Assets, and Paxos to transition their existing state trust companies into federally chartered banks.

This regulatory shift allows these firms to function under a single national standard, alleviating the challenges of adhering to a mishmash of state regulations, a persistent issue for digital asset custodians.

For Paxos, this approval explicitly allows for the issuance of stablecoins under federal oversight, while Ripple’s charter clearly states it will not use the bank to issue its RLUSD.

Crypto firms contend that obtaining a national trust bank charter enhances regulatory clarity and bolsters client trust, particularly regarding custody and settlement services.

Issuers of stablecoins see federal oversight as a means to assure corporate clients and distinguish themselves from lightly regulated competitors.

Jonathan Gould, the Comptroller of the Currency, noted that these new entrants will contribute to ensuring the federal banking system "keeps pace with the evolution of finance."

Growth of Legitimacy in Crypto Industry

These approvals arrive at a time when the crypto sector is striving for greater legitimacy in Washington.

In 2025, the digital asset market has witnessed several significant public listings. Recently, it was announced that tZero Group, a New York-based blockchain infrastructure company focused on tokenized securities and real-world assets, is gearing up for a public offering in 2026.

Additionally, BitGo has officially filed for an initial public offering (IPO), making history as the first dedicated crypto custodian to seek a listing on a US stock exchange.

Stablecoin issuer Circle made headlines with its IPO in June, experiencing a remarkable increase of more than sevenfold since going public.

Moreover, online trading platform Etoro, which includes crypto trading among its services, made its debut in May.

In a further show of confidence in the market, Gemini, the exchange established by the Winklevoss twins, filed confidentially for a U.S. IPO in June, indicating strong market optimism for crypto exchanges.

Recently, Figure Technology Solutions Inc., a blockchain-focused lending platform, raised $787.5 million in its initial public offering.

In contrast, Ripple has indicated that it has no intention of pursuing an IPO at this time.