• Galaxy Digital applies to the OCC for a national trust bank charter to consolidate digital asset services under federal supervision
• CEO Mike Novogratz says the move will support expansion as cryptocurrency adoption accelerates
• The charter would not permit deposit-taking or commercial lending
• Galaxy already holds more than 50 regulatory licenses across the US, Europe and Asia
• Ripple recently secured unconditional OCC approval for its own national trust bank
• The ICBA has sued the OCC, warning that expanded trust charters could create regulatory gaps
• The dispute raises concerns about financial stability, regulatory consistency and oversight of cryptocurrency firms

Galaxy Digital has applied for a national trust bank charter with the Office of the Comptroller of the Currency (OCC), joining a growing number of cryptocurrency companies seeking federal authorization to expand their digital asset services.

The New York-based company announced the application as financial technology firms increasingly pursue national banking charters under President Donald Trump's second administration, raising concerns among traditional lenders about regulatory oversight and financial stability.

Galaxy, which provides digital asset custody, trading, staking and fiduciary investment advisory services, said the proposed charter would consolidate more of its operations within a single federal regulatory framework.

Mike Novogratz, Galaxy's founder and CEO, described the application as a significant milestone in the company's expansion strategy.

"Digital assets are becoming an increasingly important part of the global financial system, and Galaxy has spent years building the capabilities to support that transition," Novogratz said.

He characterized the charter as "an important next step, allowing us to bring more of our services under a single federal framework and expand how we serve clients as adoption accelerates."

If approved, Galaxy would operate under OCC supervision, adding another layer of federal oversight to its existing regulatory arrangements.

However, a national trust bank charter would not authorize Galaxy to accept deposits or engage in commercial lending, distinguishing its proposed activities from those of conventional banks.

The company currently holds more than 50 regulatory licenses across the United States, Europe and Asia, including broker-dealer and swap dealer registrations, alongside a New York BitLicense and money transmission license.

Galaxy argues that federal authorization would complement these existing permissions while providing a more unified regulatory structure for its expanding operations.

The application follows a surge in similar requests from cryptocurrency and fintech businesses seeking greater legitimacy and operational flexibility within the US financial system.

Ripple recently secured unconditional OCC approval to establish its own national trust bank, highlighting the regulator's increasingly prominent role in supervising digital asset businesses.

However, the expansion of national trust charters has triggered opposition from traditional banking representatives concerned that nonbank financial institutions could gain competitive advantages without facing equivalent regulatory obligations.

The Independent Community Bankers of America (ICBA) filed a lawsuit against the OCC this month, challenging the regulator's approach to trust bank charter approvals.

The trade association warned that the growing number of applications could create "a gaping hole in financial regulation."

In a separate statement opposing Ripple's approval, the ICBA argued that expanded use of national trust charters "undermines the stability of the financial system by allowing a non-traditional institution to offer deposit-like services without adequate regulatory oversight or deposit insurance."

The dispute highlights an emerging regulatory challenge as cryptocurrency businesses seek closer integration with established financial infrastructure while traditional lenders demand consistent supervisory standards.

For Galaxy, the proposed charter represents an opportunity to strengthen its federal regulatory standing and support further institutional adoption of digital assets.

However, the industry's expanding presence within the national banking framework is likely to intensify debate over whether existing regulatory structures provide sufficient safeguards for emerging digital asset business models.