Summary:

• The U.S. Office of the Comptroller of the Currency has conditionally approved national trust bank charters for five crypto-linked companies: BitGo, Fidelity, Paxos, Circle and Ripple.
• BitGo, Fidelity and Paxos will transition from state-level trust companies to federally chartered institutions.
• Circle and Ripple received approvals for new national trust bank charters.
• OCC leadership emphasized the importance of innovation and competition in the evolving financial ecosystem.

In a development that marks a shift in the relationship between digital asset companies and the United States banking framework, the U.S. Office of the Comptroller of the Currency (OCC) announced conditional approvals for five national trust bank charter applications tied to the crypto industry.

The OCC's Friday notice stated that BitGo, Fidelity and Paxos have been approved to convert their existing state-level trust companies into federally chartered national trust banks. Additionally, Circle and Ripple received conditional approval for new national trust bank charters.

Each of these approvals represents a significant step for digital asset firms looking to expand services under the supervision of a federal regulator rather than operate primarily under state-level trust laws. The decisions also reflect an ongoing effort by U.S. regulators to both support financial innovation and ensure that evolving financial services operate within a stable and supervised banking framework.

What a National Trust Bank Charter Means

A national trust bank charter allows companies to operate as federally chartered banking institutions with the authority to offer trust services, custody, and in many cases, deposit-taking and lending activities under the oversight of the OCC.

For companies like BitGo and Paxos, this shift can expand the scope of their operations while aligning them with the broader regulatory expectations that apply to national banks. Fidelity, long a fixture in the traditional asset management world, will similarly strengthen its position in digital asset custody and services.

Circle and Ripple, which received approvals for new charters, will have the opportunity to build out federal bank entities rather than restructure existing state-chartered trust companies.

This matters because operating under a national charter can:

• Offer access to federal supervision and protections
• Provide a clearer regulatory environment for custodial and trust services
• Enable broader access to payment and treasury systems
• Increase confidence among institutional clients

The transition from state to federal charter is a multistep process. Conditional approval is an early milestone that allows the firms to begin preparing for full operational licensing, subject to meeting capital, governance, compliance and risk-management requirements.

What the OCC Said on the Approvals

Comptroller of the Currency Jonathan V. Gould summed up the OCC's rationale behind the move in the official announcement. He framed the approvals as part of a broader effort to balance innovation with the stability and competitiveness of the U.S. banking system.

Gould said:

This statement reflects the OCC's long-standing mission of expanding access to banking services while safeguarding the system's safety and soundness. Gould's comments also signal that regulators are aware of the unique pressures and opportunities presented by digital asset firms seeking to enter the federal banking space.

Who Are the Approved Companies?

BitGo
BitGo began as a crypto custody provider and wallet infrastructure company widely known for supporting institutional digital asset storage. A national trust bank charter would position BitGo to expand beyond custody into a broader set of trust and bank operations.

Fidelity
Fidelity has deep roots in traditional financial services and has increasingly offered digital asset custody and related services through Fidelity Digital Assets. The move to a federal charter would strengthen its ability to integrate digital assets within mainstream financial infrastructure.

Paxos
Paxos is known for its blockchain infrastructure, stablecoin issuance and custody solutions. Paxos already held state trust charters but will now prepare for federal oversight as part of its charter transition.

Circle
Circle is the issuer of the widely used stablecoin USDC and operates cross-border payments and treasury solutions. A new national trust bank charter could expand Circle's institutional offerings and tie its stablecoin operations more directly to regulated banking functions.

Ripple
Ripple, which has faced regulatory disputes over years relating to its XRP token, is now preparing to establish a federally chartered trust bank. This could mark a strategic turn toward operating core services under stricter federal supervision.

Together, these five entities represent a mix of traditional financial institutions expanding into digital assets (like Fidelity), stablecoin issuers (Circle), infrastructure and custody firms (BitGo, Paxos), and crypto-native firms transitioning into banking-friendly models (Ripple).

Why This Matters Now

The conditional approvals arrive at a time when regulators and industry participants alike are rethinking how digital asset firms should be integrated into the broader financial system. Past years have seen intense debate about whether digital asset companies should be treated as banks, fintechs, securities firms, or something else entirely.

By allowing these firms to pursue national trust bank charters, the OCC is effectively laying out a clearer path for regulated digital finance entities to operate side-by-side with traditional banks - at least under the federal banking umbrella.

This matters for a few reasons:

• 1. Regulatory Clarity
  Digital asset firms have long complained about regulatory uncertainty in the U.S. The OCC's conditional approvals signal a willingness to work with companies on federal standards rather than leave them in a patchwork of state regulations.
• 2. Broader Services
  A federal charter can open access to payment systems, treasury services and other banking functions that are currently restricted or more difficult under state trust laws.
• 3. Institutional Confidence
  Institutional clients and partners often prefer dealing with federally supervised entities. These approvals may increase confidence among institutional investors that digital financial services are moving toward mainstream acceptance.
• 4. Stablecoin and Custody Oversight
  Especially for Circle and Paxos, whose services touch stablecoins and custody infrastructure, federal trust status strengthens compliance routines and governance expectations crucial for broader adoption.

How Conditional Approvals Work

A conditional approval does not mean these firms are fully operational as national trust banks yet. Instead, it marks the beginning of a process. Before receiving full national bank charters, the firms must demonstrate:

• Adequate capital and liquidity
• Compliance with federal banking laws
• Effective risk management systems
• Robust governance, reporting and audit capabilities

The OCC will continue to monitor each firm as it prepares for eventual full qualification. Meeting these requirements is not automatic and involves detailed review and testing of the firms' operational readiness. This phased approach helps ensure that institutions entering the federal banking system are prepared to meet the responsibilities that come with it.

Closing Thoughts

The conditional approvals for Paxos, Fidelity, Ripple, BitGo and Circle represent a meaningful progression in the regulatory status of digital asset firms within the U.S. financial system. By allowing these companies to pursue national trust bank charters, the OCC is acknowledging that digital finance is evolving, and in response, regulatory frameworks must adapt.

While the road to full chartering remains careful and conditional, these decisions mark a turning point - one where digital asset firms and traditional financial services are brought closer together under unified oversight. In the long term, this could lay the groundwork for broader institutional participation, deeper market integration, and a more unified financial infrastructure that bridges traditional and digital finance.