Crypto.com Eyes National Bank Charter

Crypto.com, a leading cryptocurrency exchange, has officially filed an application for a national trust bank charter with the Office of the Comptroller of the Currency (OCC). This move signals a growing trend among crypto firms seeking to integrate more deeply with traditional financial systems.

A Growing Trend

Crypto.com joins a list of prominent crypto companies, including Circle (issuer of USDC), Coinbase, and Stripe's stablecoin arm, Bridge, in pursuing national bank charters. This reflects a desire for greater regulatory clarity and legitimacy within the US financial landscape.

Kris Marszalek, co-founder and CEO of Crypto.com, stated that obtaining the charter would reinforce the company's commitment to providing secure and regulated services to its customers.

Benefits of a National Bank Charter

Approval of the charter would allow Crypto.com to enhance its custody services and potentially offer a wider range of banking products to its user base. The OCC's decision earlier this year to allow banks to engage with crypto assets has spurred increased interest in these charters.

Other Developments in Crypto Banking

• Erebor's Conditional Charter: Crypto bank Erebor, backed by Peter Thiel, recently secured a conditional federal charter.
• Fed's "Skinny" Master Accounts: The Federal Reserve is considering expedited issuance of "skinny" master accounts, offering limited access to the Fed's payment system for crypto firms.
• Limitations of "Skinny" Accounts: These accounts wouldn't include benefits like interest payments or overdraft protection.

Crypto.com's Expanding Presence

Crypto.com recently relaunched its institutional exchange, indicating renewed optimism in the US regulatory environment. The company is also venturing into prediction markets, though encountering some regulatory hurdles.

Key Takeaways

• Crypto.com has filed for a national trust bank charter with the OCC.
• This move aligns with other major crypto firms seeking greater regulatory recognition.
• The Fed is exploring options to provide limited banking services to crypto institutions.
• The overall trend points towards increased integration between crypto and traditional finance.