OCC Grants Conditional Trust Charters to Crypto Firms

• OCC approved trust charters for crypto firms, allowing custody and fiduciary functions without full banking powers.

• Charters exclude insured deposits; firms must follow strict governance, risk controls and supervisory reporting rules.

• Approval avoids state-by-state regulation but raises policy questions on bank-like activities and regulatory limits.

On December 12 in Washington, D.C., the U.S. Office of the Comptroller of the Currency (OCC) announced conditional approval for national trust bank charters involving Circle, Ripple, Paxos, BitGo and Fidelity.

The action concerned trust-charter applications from digital asset firms seeking federal supervisory oversight. The OCC issued conditions tied to operations, activity permissions and supervisory expectations.

Trust Charters Approved With Operational Conditions

The OCC stated that these conditional approvals apply to national trust bank structures instead of full-service banking authorities. National trust banks focus on custody and fiduciary oversight rather than deposit-taking or loan issuance as principal. The firms named in the announcement include Circle, Ripple, Paxos, BitGo and Fidelity, according to the OCC disclosure.

However, the approvals do not grant insured depository status. The document described these charters as limited in scope, with activity boundaries. The OCC noted that applicants pursued this framework to avoid multiple state regulatory systems.

Policy Questions Around Scope and Supervisory Limits

The approval process highlighted policy debate over how digital asset custody, stablecoin management, and settlement functions fit within trust charters. Banking trade groups questioned whether high-volume settlement and reserve administration align with fiduciary mandates. They also raised concerns about regulatory arbitrage and charter use without full prudential oversight.

This discussion linked to questions about whether entities could perform bank-like economic functions while operating outside insured standards. The OCC did not broaden permissible activities beyond the trust framework. Instead, the agency outlined oversight requirements and supervisory expectations.

Expectations for Governance, Reporting and Risk Controls

Applicants must implement governance systems and activity-level risk controls. Additionally, the OCC indicated that firms should maintain conservative operational plans consistent with trust banking limits. Reporting obligations may continue after charter approval. The agency referenced supervision of activity boundaries rather than expansion of capabilities.

The OCC also acknowledged that future applicants may face adjusted review processes. The announcement did not reference launch timelines or identify which activities will receive final authorization.