The US Office of the Comptroller of the Currency (OCC) has conditionally approved five national trust bank charter applications, including First National Digital Currency Bank, Ripple National Trust Bank, BitGo Bank & Trust, National Association, Fidelity Digital Assets, National Association, and Paxos Trust Company, National Association.
Once these institutions meet the OCC’s conditions, they will join roughly 60 other national trust banks currently supervised by the OCC.
The OCC applied the same rigorous review standards used for all charter applications, evaluating each on its individual merits and in line with statutory and regulatory requirements.
“New entrants into the federal banking sector are good for consumers, the banking industry and the economy,”
said Comptroller of the Currency Jonathan V. Gould.
“They provide access to new products, services and sources of credit to consumers, and ensure a dynamic, competitive and diverse banking system. The OCC will continue to provide a path for both traditional and innovative approaches to financial services to ensure the federal banking system keeps pace with the evolution of finance and supports a modern economy.”
The approvals include de novo national trust bank charters for First National Digital Currency Bank and Ripple National Trust Bank, as well as conversions from state trust companies to national charters for BitGo Bank & Trust, Fidelity Digital Assets, and Paxos Trust Company.
The federal banking system consists of more than 1,000 national banks, federal savings associations, and federal branches of foreign banks in the US.
Institutions range from community banks under US$30 billion in assets to the largest internationally active banks.
They provide retail and wholesale banking, trust, credit card, and other specialized services.
Together, federal banking institutions conduct about 67% of US banking activity, hold over US$17 trillion in assets, and manage more than US$85 trillion under their control.
Featured image credit: Edited by Fintech News Switzerland, based on image by user850788 via Freepik
