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Coinbase to Secure Trust Charter, Rejects Traditional Bank Role

Key Takeaways

  • Coinbase has applied for a National Trust Charter to broaden its business under federal regulation, but does not plan to become a bank;
  • The charter could allow Coinbase to handle deposits and withdrawals directly, which reduces reliance on external banking partners for transactions;
  • Coinbase aims to connect digital assets with traditional financial systems and expand into payment services under a clearer regulatory framework.

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Coinbase to Secure Trust Charter, Rejects Traditional Bank Role

Coinbase $1.42B has officially filed an application for a National Trust Company Charter with the US Office of the Comptroller of the Currency (OCC).

In a public statement released on October 3, the company noted that this decision aims to broaden its business under federal regulation.

While seeking new ways to operate within a regulated framework, Coinbase stated that it does not plan to become a traditional bank.

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Rather than entering the banking industry, Coinbase explained that its goal is to create better links between digital assets and standard financial systems. It emphasized the importance of maintaining clear rules and strong oversight while continuing to offer secure services to customers.

Coinbase noted that this approach supports innovation without compromising regulatory standards.

Coinbase also mentioned that the charter could open up new opportunities beyond holding assets for clients. This would include expanding into payment services and related tools, all under a clearer regulatory framework.

Luke Youngblood, a former Coinbase staff member who worked on staking features, stated in a podcast that obtaining the trust charter could enable Coinbase to handle deposits and withdrawals directly, without relying on outside banks for those transactions.

Additionally, Brendan Pedersen, a political commentator, pointed out that trust companies have faced more limits in their operations compared to banks. Still, he acknowledged that these lines have become less defined over time.

John D’Agostino, Coinbase’s head of institutional strategy, discussed the role of cryptocurrencies in the use of artificial intelligence (AI) in finance. What were his key points? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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