From Startup Fortune · · 1m 10s
Coinbase Gets Final OCC Approval for Custody Business
Coinbase's new national trust bank charter boosts institutional custody but delays earnings.
In brief
Coinbase's new national trust bank charter boosts institutional custody but delays earnings. Coinbase received final OCC approval to run its custody business as a national trust bank, enabling segregated accounts for institutional clients without retail deposits. Originally reported by Startup Fortune.
Final OCC Approval
Coinbase received final approval from the Office of the Comptroller of the Currency for its national trust bank charter on November 9.
“Coinbase announced on Monday, November 9 that the Office of the Comptroller of the Currency has granted final approval for Coinbase National Trust Company.”
Charter Details
The charter takes effect November 6, allows institutional custody accounts, and prohibits retail deposits, traditional lending, and stablecoin issuance.
“The charter doesn't allow ordinary retail deposits, traditional lending or fractional reserve banking, and crypto.news notes it also rules out issuing stablecoins directly.”
Capital Requirements
Coinbase must hold $60 million in Tier 1 capital and maintain liquid assets covering 180 days of expenses for the first three years.
“The entity must hold at least $60 million in Tier 1 capital and keep liquid assets covering 180 days of operating expenses during its first three years.”
Institutional Transition
Coinbase will move institutional custody to the new federal entity over three years while keeping trading through other affiliates.
“Over a three-year period it will move that business into the new federal entity, per Cointelegraph.”
PNC Partnership
PNC Bank is piloting USDC payments for corporate clients with automatic conversion to US dollars through Coinbase.
“PNC Bank is piloting USDC payments for eligible corporate and institutional clients, with incoming USDC converting automatically to US dollars.”
Market Reaction
COIN stock dropped 40% this year and 57% over twelve months after the approval, signaling investors see it as compliance, not revenue.
“Bitcoin.com put COIN at $136.76 on November 9, down about 40% this year and 57% over twelve months.”
At a glance
Coinbase received final OCC approval to run its custody business as a national trust bank, enabling segregated accounts for institutional clients without retail deposits.
