In a landmark move for the digital asset industry, the Office of the Comptroller of the Currency (OCC) granted conditional approvals on December 12, 2025, for five major crypto firms to become federally chartered trust banks. The approvals for Circle, Ripple, Paxos, Fidelity Digital Assets, and BitGo mark a significant shift, signaling a path toward greater regulatory integration for stablecoin issuers and crypto custodians under the watch of a key federal banking regulator.
A Conditional Path to Federal Oversight
The OCC’s approval is conditional, meaning each firm must meet specific agency standards and supervisory conditions before commencing full operations as national trust banks. For Circle and Ripple, this means establishing new institutions—First National Digital Currency Bank and Ripple National Trust Bank, respectively. For Paxos, BitGo, and Fidelity Digital Assets, which already operated under state charters, the approval conditionally converts their status to a federal one. Once finalized, they will join the ranks of roughly 60 existing national trust banks, following the precedent set by Anchorage Digital, the first crypto firm to receive such a charter in 2021.
The move is seen as a direct outcome of a friendlier regulatory stance toward crypto under the current administration and the passage of the GENIUS Act, which created a federal framework for stablecoins. OCC Comptroller Jonathan Gould framed the decision as essential for keeping the federal banking system modern and competitive, stating that new entrants “provide access to new products, services and sources of credit”.
Why It Matters: Stability, Access, and Trust
For the companies involved, a federal trust charter is a game-changer, especially for stablecoin issuers. It promises access to Federal Reserve services and payment systems, which can enhance the stability and efficiency of their digital dollar tokens. Circle explicitly stated that its charter would “enhance the safety and regulatory oversight of the USDC Reserve”. Ripple CEO Brad Garlinghouse hailed the approval as a “massive step” for its RLUSD stablecoin, setting a high bar for compliance.
Beyond stablecoins, the charters formally bring digital asset custody services—critical for institutional investors—under federal banking supervision. This provides a clearer, unified regulatory framework, potentially boosting institutional confidence and participation. As Paxos CEO Charles Cascarilla noted, a federally regulated platform allows businesses to operate with greater “clarity and confidence”.
Not Everyone is Celebrating
The decision has not been universally applauded. Major banking trade groups, including the Bank Policy Institute (BPI), have raised objections. BPI President Greg Baer stated the approvals “leave substantial unanswered questions”, particularly regarding whether regulatory requirements are properly tailored to the novel risks of crypto activities. This opposition highlights the ongoing tension between traditional finance and the emerging digital asset sector. Garlinghouse criticized what he called the “anti-competitive tactics” of bank lobbyists, who have long argued that crypto lacked sufficient oversight.
It’s also notable that not every applicant was successful. High-profile applications from companies like Coinbase and a subsidiary of Stripe were not among those approved.
The OCC’s conditional approvals represent a pivotal moment in the maturation of the U.S. crypto industry. While hurdles remain before these charters become fully active, the move charts a course toward a future where core crypto services operate within the bounds of federal banking regulation, aiming to combine innovation with greater oversight and trust.
