Crypto.com Moves Closer to Full Bank Status with Conditional US Charter Approval
Crypto.com has received conditional approval from the Office of the Comptroller of the Currency (OCC) to establish a national trust bank. The company said the approval allows the company to hire Foris Dax National Trust Bank, which will operate under the name Crypto.com National Trust Bank once it receives full approval.
Crypto.com Develops Managed Storage Systems
Kris Marszalek, Founder and CEO of Crypto.com, explained development as an indication of the company’s focus on compliance and customer protection.
According to Marszalek, receiving full approval would position the company as a “qualified watchdog” operating under what he described as the gold standard of government oversight.
The company said it aims to provide storage, warehousing across multiple blockchains and digital asset protocols – including its Cronos network – and trade settlement services within a regulated framework.
However, Crypto.com is not alone in pursuing this regulatory approach. Last year, the OCC did just that approved state trust charter applications from several major digital asset firms, including Circle’s First National Digital Currency Bank, Ripple National Trust Bank, BitGo Bank & Trust, Fidelity Digital Assets, and Paxos Trust Company.
Recently, Bridge – a stablecoin infrastructure provider owned by Stripe – said it also received conditional approval to establish a national trust bank.
If completed, these charters will allow crypto companies to directly hold and manage customer assets, potentially simplifying payment processing and speeding up payment times. However, recent OCC approval has been obtained to examine in traditional banking groups.
ABA Urges OCC to Suspend Approval of Crypto Trust Bank
The American Bankers Association (ABA) last week asked the OCC to pause further approvals of crypto and stablecoin companies until there is greater clarity regarding the regulatory framework related to the GENIUS Act.
ABA he urged regulator not to proceed with applications if the full scope of regulatory responsibilities – including requirements that may arise under future GENIUS Act rulemaking – are not clearly defined.
In its comments, the organization warned that unsecured national banks that are heavily focused on digital assets present unresolved security and sound concerns.
Among the problems mentioned are the separation of client assets, the conflict of interest, which is suspected cybersecurity risksoperational resilience, and how such institutions will be dealt with should they fail.
Meanwhile, interest in the national trust bank situation continues to grow within the digital assets sector. In January, World Liberty Financial (WLFI) said one of its subsidiaries has applied to create a national trust bank focused on stablecoin operations.
However, at the time of writing, the traditional token of the exchange, CRO, was trading at $0.074, according to CoinGecko. data20% loss is registered in monthly period.
Featured image from OpenArt, chart from TradingView.com
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