Crypto.com has announced that it has received conditional approval from the Office of the Comptroller of the Currency (OCC) to charter a new bank, Foris Dax National Trust Bank, which will operate under the name Crypto.com National Trust Bank. This significant development was disclosed in a press release on February 23.
The conditional approval marks a pivotal step in Crypto.com’s ambition to enhance its custodial services as a federally regulated institution. Once fully authorized, Crypto.com National Trust Bank will function as a national trust bank under the oversight of the OCC, further solidifying the company’s position as a leading qualified custodian in the digital asset sector.
Kris Marszalek, the co-founder and CEO of Crypto.com, praised the conditional approval, stating that it underscores the company’s dedication to regulatory compliance. He expressed optimism that this milestone brings the company closer to catering to the needs of major institutions seeking a centralized and compliant custodian, operating under rigorous federal oversight.
Importantly, the announcement clarified that this conditional approval does not affect the operations of Crypto.com Custody Trust Company, which continues to provide client services under the auspices of the New Hampshire Banking Department as a non-depository trust company.
This development follows similar conditional bank charter approvals granted by the OCC to other firms in the digital asset industry, including notable names like Circle, Ripple, and BitGo. Industry experts noted that while numerous national banks and federal savings associations exist within the federal banking system, the entry of crypto-related entities into this realm signifies a noteworthy shift in regulatory attitudes.
The approvals signal a recognition by federal regulators of the evolving landscape of financial services, where cryptocurrency companies are increasingly seen as legitimate players. However, these approvals come with specific conditions that each applicant must meet before commencing operations. This shift indicates a growing willingness among regulators to incorporate crypto-connected banking within the established framework that governs traditional banking institutions.
The trend of FinTech companies pursuing bank charters as a strategy for bolstering their operations and ensuring regulatory compliance is gaining momentum. Legal experts suggest that the regulatory landscape is slowly adjusting to permit banks to engage in core banking services within the digital asset domain. This evolution may pave the way for a more integrated approach to banking and technology, allowing for a smoother coexistence of traditional financial services with innovative digital solutions.
