Coinbase scores trust bank charter, but can't take deposits

The Office of the Comptroller of the Currency gave Coinbase the nod to operate as a national trust bank, the company announced. The charter is narrower than a full banking license: no regular deposits, no loans. But it lets Coinbase run payments and custody services and grow its stablecoin business.

In a press release, Coinbase called the approval an important step forward for itself and the broader crypto industry, saying it has pursued clear, consistent and best-in-class regulatory oversight. The company isn't the first to try. Block and Wise also sought trust charters, but only Circle Internet Group, Ripple and now Coinbase have pulled it off.

Coinbase says it's the world's largest crypto custodian, and it recently partnered with Citigroup on stablecoin-to-currency conversions.

The win lands despite a messy regulatory history. The SEC sued Coinbase in 2022 over illegal sales of unregistered securities, then again in 2023 for alleged securities law violations. That same year, Coinbase settled with New York for $100 million over money transmitting violations and other irregularities. Last year, hackers breached the company and demanded $20 million to keep quiet.