Crypto.com Seeks Federal Banking Charter

Crypto.com Seeks Federal Banking Charter

Publisher:Sajad Hayati

At a Glance

  • Crypto.com has formally applied for a National Trust Bank Charter with the Office of the Comptroller of the Currency (OCC) for heightened federal oversight.
  • This strategic move supports Crypto.com’s objective to enhance institutional custody services and expand its regulated offerings.
  • The application aligns with a growing trend among prominent crypto firms pursuing federal charters to strengthen their integration with traditional finance.
  • Competitors such as Anchorage, Circle, Paxos, Ripple, and Coinbase are also actively seeking similar federal banking licenses.

Crypto.com Pursues Federal Banking Charter

Crypto.com has officially submitted an application to the Office of the Comptroller of the Currency (OCC) to obtain a National Trust Bank Charter. This significant regulatory step would place the company under federal supervision, representing a notable achievement within the digital asset industry.

The application signifies a strategic move by Crypto.com to bolster its institutional custody solutions and deepen its commitment to providing regulated financial services. CEO Kris Marszalek highlighted the company’s long-standing dedication to building secure and compliant offerings since its inception, viewing the charter as a natural progression toward meeting institutional client needs.

“Building the Crypto.com product and service portfolio through regulated and secure offerings has been our focus since day one,” stated Marszalek. “We are excited to take this next step by filing for a National Trust Bank Charter and look forward to continuing to pursue opportunities to provide customers with the trusted services they require.”

Strategic Regulatory Advancement

This charter application is a key component of Crypto.com’s ongoing regulatory strategy. Recent months have seen the company achieve significant compliance milestones, underscoring its focus on security and trust.

💡 Just weeks prior to the charter filing, on October 3, Crypto.com successfully upgraded its Payment Card Industry Data Security Standard (PCI DSS) certification to the latest v4.0 standard. This advanced certification is crucial for payment security and is a benchmark many financial institutions aim to meet.

Furthermore, Crypto.com’s U.S. custody entity, Crypto.com Custody Trust Company, recently obtained SOC 1 Type II and SOC 2 Type II compliance attestations in September. These attestations provide third-party validation of the company’s financial reporting controls and security infrastructure, reinforcing its current state-level operations in New Hampshire.

Industry Trend Towards Federal Charters

Crypto.com is part of a broader movement within the cryptocurrency sector where major firms are actively seeking federal banking charters. This trend reflects a strategic push for greater integration with the established traditional financial system and enhanced regulatory credibility.

Anchorage Digital was the first digital asset firm to secure an OCC charter in 2021. The pace of applications has accelerated significantly in the current year. Notably, stablecoin issuer Circle and tokenization platform Paxos have also filed for charters. Ripple followed suit in July, and more recently, major U.S. exchange Coinbase announced its own application on October 3.

Final Thoughts

Crypto.com’s pursuit of a National Trust Bank Charter signifies a deepening commitment to regulatory compliance and institutional-grade services. This move aligns with a growing industry trend of crypto firms seeking federal oversight to build trust and facilitate broader adoption within traditional finance.

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