Coinbase Secures Final Federal Approval for Custody Bank

Coinbase has received final approval from the Office of the Comptroller of the Currency to operate the Coinbase National Trust Company. This decision allows the firm to bring its digital asset custody activities under a uniform federal regulatory framework in the United States.

The national custody bank status replaces the previous structure that relied on a limited state license obtained in New York in 2018. The company emphasized that this new model does not involve commercial banking operations, retail deposits or fractional reserve practices.

With this new authorization, the company plans to expand its services for institutional clients. The scope includes offering segregated accounts, access to staking and financing, as well as exploring payment products and interaction with smart contracts.

This move places Coinbase alongside other sector firms that already hold federal approval, such as Circle, Ripple, BitGo and Fidelity Digital Assets. The process of obtaining the national charter took months following the granting of conditional approval in April of the previous year.

Regulatory standardization at the federal level may reduce legal uncertainty for large institutional investors seeking exposure to Bitcoin and other digital assets. Greater clarity in custody rules tends to lower the perceived counterparty risk for funds and corporations operating in the crypto market.