US OCC officially allows banks to act as intermediaries in digital asset trading

Source: BlockMedia Original Title: US OCC Allows Banks to Act as Intermediaries in Digital Asset Trading Original Link: The US Office of the Comptroller of the Currency (OCC) has granted major banks permission to act as intermediaries in digital asset trading between clients. This measure, which allows banks to safely and regulatedly serve as intermediaries without holding digital assets themselves, is considered a significant move to promote the mainstream adoption of digital assets.

The US OCC has issued guidelines allowing banks to enable their clients to trade digital assets instantly and without risk. According to these guidelines, this decision provides an important opportunity for banks wishing to enter the digital asset market, offering regulatory clarity in the digital asset services sector.

Banks’ Digital Asset Trading Authority Clarified

According to OCC Interpretive Letter 1188, banks do not need to directly own digital assets when brokering digital asset trades. For example, a bank can purchase digital assets from one client and immediately sell them to another, completing the transaction. Because such trades occur almost simultaneously, the bank is not exposed to market risk.

This approval supports a regulated structure for banks to offer digital asset trading services and can be seen as an extension of previous measures allowing banks to hold major digital assets. The OCC further explained that the bank’s role focuses on connecting buyers and sellers rather than engaging directly in digital asset trading.

OCC Strengthens Oversight of Banks’ Digital Asset Activities

The OCC noted that such transactions involve limited settlement risk. This decision builds on previous guidelines that allowed digital asset custody and some stablecoin transactions, enabling banks to provide digital asset services in compliance with federal regulations and giving clients safe access to digital assets.

However, the OCC emphasized that institutions must still maintain robust risk control systems, such as cybersecurity and compliance programs. This ensures that all banking operations are conducted safely and in accordance with current regulations.

Industry Response to OCC Guidelines

This move has elicited reactions from various industry analysts. An anonymous analyst welcomed the decision, saying, “This is a major change that allows banks to enter the digital asset market.” He also noted that the OCC’s explanation has made it easier for institutions to provide digital asset trading pathways.

Notably, this change is seen as a follow-up to the OCC’s previous decision to allow the entry of the digital asset specialist bank ‘Erebor’ into the banking industry.

Another analyst pointed out that the OCC considered digital asset brokering as part of traditional banking activities, and that the explanation of settlement risks in the letter is similar to those for derivatives or foreign exchange transactions. This is seen as a key indication that digital asset services are becoming increasingly central to the banking sector.