Core Viewpoint - Coinbase has applied for a National Trust Charter (NTC) to enhance its integration into the US financial system, aiming to expand its services beyond custody into payments and other trust-based financial services [1][3]. Group 1: Application for National Trust Charter - The NTC application is seen as a natural extension of Coinbase's institutional custody business, which currently secures billions in client assets [2]. - If approved, the charter would allow Coinbase to launch new products with regulatory clarity, promoting broader institutional adoption [3]. - The application reflects a trend among major crypto companies seeking alignment with traditional banking regulations, with firms like Circle and Ripple also pursuing similar charters [6]. Group 2: Regulatory Environment - Coinbase's Chief Legal Officer emphasized the need for national consistency in regulations as the crypto industry grows, moving beyond state-level charters [4]. - Federal recognition would extend existing customer protections under the New York Department of Financial Services to users nationwide [5]. - There is a broader regulatory shift in the US, with financial watchdogs increasingly willing to integrate blockchain services into the mainstream financial system [7]. Group 3: Relationship with Traditional Banking - Despite its ambitions, Coinbase does not aim to become a bank but is instead mobilizing crypto users through its Stand With Crypto initiative, which challenges perceived limitations imposed by the banking industry on access to stablecoins [8]. - In August, banking associations raised concerns about the risks of allowing uninsured institutions to issue stablecoins, warning of potential regulatory loopholes [9].