Crypto.com Applies for OCC National Trust Bank Charter to Expand U.S. Institutional Custody

Core Viewpoint - Crypto.com has applied for a national trust bank charter from the U.S. Office of the Comptroller of the Currency (OCC) to enhance its federally supervised crypto-custody services for institutional clients [1][2]. Group 1: Application Details - The application is part of Crypto.com's strategy to extend its regulated, security-first services aimed at large customers, including ETF sponsors and corporate advisers, focusing on custody and staking-related trust services across multiple blockchains [2]. - The application does not impact the existing operations of Crypto.com Custody Trust Company, which is already serving institutions as a qualified custodian under New Hampshire law [2]. Group 2: National Trust Bank Definition - A national trust bank is a limited-purpose national bank supervised by the OCC, providing custody, safekeeping, and fiduciary services nationwide, but does not engage in traditional banking activities such as taking deposits or making loans [3]. Group 3: Precedents and Comparisons - The OCC has previously approved similar applications, such as Anchorage Trust Company's conversion to Anchorage Digital Bank and Paxos National Trust in New York, indicating a trend among large crypto firms seeking national trust charters [4][5]. - Other firms like Coinbase and Circle have also filed for national trust charters, indicating a growing interest in federal oversight for crypto custody services [5]. Group 4: Implications of Approval - If approved, the OCC charter would primarily target institutional custody rather than consumer deposit accounts, potentially simplifying the use of trust services for large counterparties under a unified regulatory framework [7]. - The approval could indirectly influence market operations, including asset segregation, verification processes, and the availability of products through ETFs and advisers, although it would not convert Crypto.com into a deposit-taking bank [7]. Group 5: Regulatory Context - The OCC typically does not comment on pending applications, and past approvals have included specific conditions and timelines, emphasizing that outcomes are not guaranteed and are assessed on a case-by-case basis [8].