• OCC conditionally approves five digital asset firms for national trust charters
• Circle, Ripple and Paxos among those gaining federal oversight
• Comptroller Jonathan Gould says digital asset custody aligns with long-standing trust bank activities
• Coinbase and Bridge did not receive approval
• Industry reactions split between praise for innovation and concerns over unclear regulatory requirements

The Office of the Comptroller of the Currency on Friday conditionally approved five digital asset firms, including Circle, Ripple and Paxos, to operate under newly granted or converted national trust bank charters. 

The move marks one of the most sweeping steps yet to bring crypto service providers under federal banking oversight.

Circle’s First National Digital Currency Bank and Ripple National Trust Bank received conditional approval for new trust charters. 

Paxos Trust Co., BitGo Bank & Trust and Fidelity Digital Assets will have their existing state charters converted into national ones, significantly expanding the reach of federally regulated digital asset institutions.

Paxos CEO Charles Cascarilla called the approval a pivotal milestone, saying the shift into federal supervision would help customers ‘innovate, incubate and grow digital asset businesses safely and seamlessly within the US.’ 

Circle CEO Jeremy Allaire echoed the sentiment, describing the charter as deepening the firm’s ‘longstanding commitment to the highest standards of trust and compliance’ as stablecoins move further into mainstream finance.

The OCC emphasized that the firms underwent the same vetting process required of any applicant seeking entry into the federal banking system. 

Comptroller of the Currency Jonathan Gould said new participants boost competitiveness and expand access to financial services.

Gould defended the regulator’s stance in a separate speech Monday, noting that national trust banks have long been permitted to engage in nonfiduciary custody activities. 

Restricting digital asset custody, he argued, would disrupt a market already handling trillions of dollars in electronic safekeeping services. “There is simply no justification for considering digital assets differently”, he said.

The approvals bring the total number of national trust banks to sixty. Still, the regulator did not greenlight every high-profile applicant. Coinbase and Bridge, a subsidiary of Stripe, were notably absent from Friday’s announcement.

Industry reactions reflected a mix of enthusiasm and concern. Anchorage Digital, the first crypto firm to receive an OCC national trust charter in 2021, welcomed the expansion. 

CEO Nathan McCauley said the recognition of additional firms was ‘long overdue,’ noting Anchorage had spent years building a compliance program designed to satisfy federal standards.

Lobbyists for the traditional banking sector were more cautious. Greg Baer, CEO of the Bank Policy Institute, said the development raised questions about whether the OCC had sufficiently tailored its requirements to the risks associated with digital asset activity. 

Baer urged the regulator to release more detail on the approvals to aid public understanding of its decision-making.

Ripple CEO Brad Garlinghouse countered that viewpoint sharply, criticizing what he described as ‘anti-innovation bank lobbyists.’ 

He said the conditional approval of Ripple’s trust bank charter established ‘the highest standard for stablecoin compliance with both federal and state oversight,’ ensuring the firm’s token would be among the most transparent and responsibly managed in the market.

The regulator’s actions signal a decisive shift toward integrating digital asset providers into the established banking system, even as political pressure and industry skepticism continue to shape the debate over the future of crypto oversight.