OCC Preliminarily Approves Creation of 5 National Trust Banks

The Office of the Comptroller of the Currency (OCC) announced the preliminary approval of five applications for national trust bank charters. The decisions will take effect once the applicants meet all prescribed conditions.

Specifically, Ripple and First National Digital Currency Bank received permission to establish de novo national trust banks, while BitGo, Paxos, and Fidelity Digital Assets will be able to convert their existing state-chartered trust companies into national trust banks.

If finally approved, the new entrants will join approximately 60 national trust banks currently supervised by the OCC. The regulator emphasized that it applied a full set of standard reviews to the applications, including assessments of business models, regulatory compliance, and risk.

OCC Comptroller Jonathan Gould noted that the influx of new organizations strengthens the financial system, expands consumer access to modern products and services, and supports a competitive environment. According to him, the agency intends to continue opening opportunities for both traditional and innovative participants in the financial sector so that the federal banking system meets the needs of the modern economy.

Earlier this month, the Office of the Comptroller of the Currency allowed national banks to act as intermediaries in cryptocurrency transactions without holding digital assets on their balance sheets, and the agency head confirmed that trust banks are fully authorized to provide custodial and related services, including those involving digital assets.