U.S. authorities grant Coinbase a banking charter

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U.S. authorities grant Coinbase

Crypto companies become part of the banking system

Coinbase is one of several major crypto companies seeking federal banking status. In October, Ripple received a full trust bank charter, while World Liberty Financial, which is linked to U.S. President Donald Trump's family, had previously secured conditional approval from the OCC.

Interest in banking charters among crypto companies accelerated following the passage of the GENIUS Act, which established federal rules for stablecoins. The legislation opened the door for regulated trust institutions to issue digital currencies, provided they meet the applicable requirements.

Under the Trump administration, U.S. regulators have become more willing to admit cryptocurrency companies into the banking system. This marks a significant departure from previous years, when U.S. financial regulators approached such initiatives cautiously and restricted crypto businesses' access to traditional financial infrastructure.

However, the expansion of banking privileges for crypto companies has faced resistance from the traditional financial sector. The Independent Community Bankers of America (ICBA) filed a lawsuit against the OCC, accusing the regulator of exceeding its authority by granting trust bank charters to cryptocurrency firms.

Banks increasingly embrace blockchain

Traditional banks are also expanding their use of blockchain technology and digital assets. For example, on October 19, U.S. banking giant JPMorgan launched its digital token, JPM Coin (JPMD), on the Ethereum network. The token represents a tokenized U.S. dollar bank deposit and enables institutional clients to make payments around the clock. JPM Coin had previously operated on Base, a blockchain developed by Coinbase. The largest U.S. bank is gradually moving some of its financial operations onto public blockchains.

Another example involves Italian banks BPER Banca and Cassa Depositi e Prestiti (CDP). In late October, they arranged the issuance of €10 million in tokenized bonds for SITE. The securities were issued on a public blockchain, with both financial institutions purchasing equal portions. The proceeds will be used to develop infrastructure and purchase equipment. This was Italy's largest tokenized bond issuance by value, demonstrating how banks are beginning to use blockchain not only for payments but also to raise capital.

As a reminder, Coinbase recently made USDC the default stablecoin in Samsung Wallet.

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