Today the Office of the Comptroller of the Currency announced the provisional approval of two de novo national trust bank charters for First National Digital Currency Bank, a subsidiary of stablecoin issuer Circle, and Ripple National Trust Bank. Additionally, it conditionally approved the conversion of three state trusts into national trust banks: BitGo Bank & Trust, Fidelity Digital Assets and Paxos Trust Company. All five firms are in the digital assets sector, three of which are stablecoin issuers.
“New entrants into the federal banking sector are good for consumers, the banking industry and the economy,” said Comptroller of the Currency Jonathan V. Gould. “They provide access to new products, services and sources of credit to consumers, and ensure a dynamic, competitive and diverse banking system. The OCC will continue to provide a path for both traditional and innovative approaches to financial services to ensure the federal banking system keeps pace with the evolution of finance and supports a modern economy.”
The approval letters provide details absent from the heavily redacted public applications. Circle’s letter clarifies its dual trust structure: a New York state trust (for which Circle is separately applying) will issue USDC stablecoins, while the national trust bank will manage reserves, act as collateral trustee, and provide digital asset custody services to affiliates on a fiduciary basis. Circle is currently regulated in New York, but not as a trust.
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