United States banking regulators have officially granted full approval for Coinbase to operate a federally chartered trust bank. The Office of the Comptroller of the Currency (OCC) issued a full national trust bank charter to Coinbase National Trust Company on November 6, 2026, and announced it publicly on November 9, 2026. The decision concludes a licensing process initiated in October 2025, following preliminary approval from the OCC on April 2, 2026.
Through this federal charter, Coinbase’s institutional digital asset custody operations now fall under direct US federal banking supervision. Coinbase’s move follows in the footsteps of Ripple, which secured a similar charter on October 26, 2026. However, federal bank status does not turn Coinbase into a commercial bank where the general public can hold savings.
Not a Place for Retail Deposits
The OCC placed strict limits on the operations of Coinbase National Trust Company. The new entity is not a conventional commercial bank, meaning it is barred from taking standard retail deposits from individual customers. Regulators also prohibited the trust entity from directly issuing stablecoins and from practicing fractional reserve banking, which involves lending out customer deposited funds.
For other investment products, the trust entity holds a limited role. Services such as staking, prime trading, and financing facilities will continue to be provided by other Coinbase affiliates. Under this structure, the federal trust bank acts solely as an administrative intermediary for institutional clients utilizing those services.
$60 Million Capital Requirement and Separate Fed Access
In exchange, the OCC demanded substantial capital readiness from Coinbase. The trust bank entity must maintain at least $60 million in Tier 1 capital in the form of qualifying liquid assets. In addition to this core capital, Coinbase is required to hold sufficient liquid asset reserves to cover operating expenses for at least 180 days during its first three years of operation.
The transition of the institutional custody business from state to federal oversight will also take place gradually. Over three years, Coinbase will migrate its institutional custody portfolio from Coinbase Custody Trust Company - previously supervised by the New York State Department of Financial Services (NYDFS) - to the new federal national trust entity.
The federal banking charter does not automatically open access to the central bank’s payment system either. The OCC charter does not grant Coinbase National Trust Company direct access to the Federal Reserve’s payment system (Fedwire). To utilize this interbank transfer facility, Coinbase must still pass a separate risk evaluation under the Fed’s account access guidelines.
For institutional clients, the transition to a federal charter offers governance certainty on par with traditional custody banks. Coinbase Vice Chairman Ryan VanGrack emphasized that the approval demonstrates the company’s commitment to regulatory clarity and rigorous supervisory compliance. For everyday retail investors, the Coinbase trading app continues to operate as usual - the key difference being that the large-scale asset custody infrastructure behind the scenes is now directly supervised by national banking authorities in Washington.
Reported by crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
