The U.S. Office of the Comptroller of the Currency (OCC) has issued conditional approval for five major digital asset firms to become federal trust banks, marking one of the most consequential regulatory shifts for the crypto industry to date. The move brings key stablecoin issuers and crypto custodians directly under federal banking supervision, signaling a new era of regulatory integration rather than exclusion.
Who Received Conditional Approval?
According to the OCC’s announcement, the following entities have been granted conditional federal trust bank charters:
First National Digital Currency Bank (Circle)
BitGo
Fidelity Digital Assets
Paxos
Until now, all of these firms operated primarily under state-level licenses. With this approval, they are transitioning into conditionally chartered federal trust banks, subject to OCC oversight once final requirements are met.
The OCC is the only U.S. federal regulator with authority to charter national banks and trust banks, making this approval a landmark moment for crypto’s relationship with the traditional financial system.
A Major Policy Shift Under the Trump Administration
This wave of approvals is widely viewed as a dramatic reversal of prior anti-crypto regulatory posture. Since President Donald Trump returned to office, the OCC — now led by Trump appointee Jonathan Gould — has pivoted toward a more industry-friendly, innovation-focused stance.
Gould emphasized that the OCC aims to modernize banking oversight rather than resist technological change, stating:
> “The OCC will continue to provide pathways for both traditional and innovative approaches to financial services, ensuring the federal banking system keeps pace with the evolution of finance and supports the modern economy.”
If these firms satisfy all remaining conditions, they will join approximately 60 federally regulated trust institutions, gaining the authority to conduct activities such as digital asset custody and trust services.
What Federal Trust Banks Can — and Cannot — Do
National trust banks differ from full-service national banks in important ways:
✅ Allowed: Asset custody, trust services, digital asset safekeeping
❌ Not allowed: Retail deposits and traditional lending
This structure mirrors the regulatory framework used by Anchorage Digital, the first crypto-native firm to receive a federal bank charter. While restrictive, the model provides regulatory clarity, legitimacy, and direct federal supervision — all critical for institutional adoption.
Ripple: “Extremely Big News” for Stablecoins
Ripple CEO Brad Garlinghouse called the OCC decision “extremely big news” and a “massive step forward” for Ripple’s $1.3 billion RLUSD stablecoin.
In a post on X, Garlinghouse also criticized traditional banking trade associations for what he described as anti-competitive tactics, saying:
> “You complain that crypto doesn’t play by the same rules — yet here we are, under direct OCC oversight, prioritizing compliance, trust, and innovation for the benefit of consumers. What are you afraid of?”
His comments underscore growing frustration within crypto over long-standing claims that the industry has been unfairly excluded from the U.S. banking system.
Circle: Strengthening Oversight of USDC Reserves
Circle, issuer of USDC, the world’s second-largest stablecoin, said that a national trust bank charter would:
Enhance safety and oversight of USDC reserves
Enable Circle to offer institutional-grade digital asset custody
Expand regulated financial services for enterprise and institutional clients
This step reinforces Circle’s strategy of positioning USDC as the most compliant and regulator-friendly stablecoin in global markets.
Paxos: From NYDFS to Federal Supervision
Paxos, the company behind PYUSD ($3.8 billion) and Global Dollar (USDG, $1.4 billion), said federal trust status would allow businesses to:
Issue
Custody
Trade
Settle digital assets
— all within a transparent, federally supervised framework.
Paxos has operated under New York Department of Financial Services (NYDFS) oversight since 2015 and first applied for a federal charter in 2020, making this approval the culmination of a multi-year effort.
BitGo and the End of “Operation Chokepoint 2.0”
BitGo CEO Mike Belshe described the OCC’s move as:
> “The official end of the war on crypto and the beginning of the next era of banking innovation.”
BitGo is also the issuer of USD1, the digital dollar token linked to World Liberty Financial, a crypto project with close ties to the Trump family. Belshe emphasized that crypto has now entered an era of regulatory integration, where innovation can accelerate rather than stall.
Fidelity Digital Assets: Institutional Validation
The inclusion of Fidelity Digital Assets — a subsidiary of one of the world’s largest asset managers — further legitimizes crypto’s role in the traditional financial system. Federal trust bank status strengthens Fidelity’s ability to serve institutional investors seeking regulated digital asset exposure.
The Debanking Backdrop
For years, U.S. crypto firms have struggled with banking access, often alleging coordinated efforts by regulators and financial institutions to cut off lawful crypto businesses — a phenomenon commonly referred to as “debanking.”
The OCC recently released a report on debanking, warning that:
All nine major banks implicated
And any institution that terminates relationships with lawful customers without proper justification
could face regulatory penalties.
The Trump administration has pledged to dismantle policies that disadvantage crypto firms, framing this shift as essential for U.S. competitiveness.
Why This Matters
This development represents more than licensing approvals — it marks a structural realignment between crypto and U.S. banking regulation. Stablecoin issuers and custodians are no longer operating at the edge of the system, but inside it.
If successful, this framework could:
Accelerate institutional adoption
Strengthen trust in dollar-backed stablecoins
Position the U.S. as a leader in regulated digital finance
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