Five digital asset firms — Circle, Ripple, Fidelity Digital Assets, BitGo and Paxos — have received conditional approval from the Office of the Comptroller of the Currency (OCC) to become federally chartered trust banks, marking a major step to bring U.S. dollar stablecoin issuers under federal oversight.

These companies, which previously operated under state charters, will transition to conditional federal status. The move highlights the OCC’s expanding role in crypto regulation, especially as the agency under President Donald Trump shifted from a cautious to an industry-friendly stance.

If they meet all OCC requirements, these trust banks will join about 60 federally supervised institutions, with authority to conduct fiduciary activities such as digital asset custody. Ripple CEO Brad Garlinghouse called the development “huge news” and a significant milestone for the firm’s $1.3 billion RLUSD stablecoin.

Circle, Paxos, and BitGo said federal status will enhance safety, transparency, and support for issuing, custodying, and transacting digital assets. The OCC also warned major banks about debanking legitimate crypto businesses, noting that violators could face penalties.