The Crypto Exchange Coinbase has applied for a Charter of the National Trust Company with the Currency (OCC) Comptroller’s office, joining a growing number of crypto-based companies pursuing the same license.
“The Coinbase has taken a significant step in expanding our business capabilities and regulatory administration beyond the existing plot, which enables the way for the change and growth of the development of a modern financial system enabled by digital ownership,” Coinbase Says In a statement on Friday.
Coinbase is chasing the license “bridge the gap” along with tradfi
According to Coinbase, license pursuit is part of its approach “to bridge the gap between the crypto economy and the traditional financial system.” However, it has no interest in changing the basic focus of its operations:
“The Coinbase has no intention of becoming a bank. This is our strong belief that the clear rules and the trust of our regulators and customers enable Coinbase confidence to change while ensuring proper administration and security.”
Luke Youngblood, a former coinbase employee who led the creating Coinbase Staking rewards, Explained In a podcast published Friday that the license will allow Coinbase to “offer a standard built-in on-ramp, off-ramp, and no need to use bank partners in ramps, off-ramps.”
Coinbase said the license approved will allow the exchange to expand the services, opening the door to payments and other related offerings under the clearer regulations.
However, political commentator Brendan Pedersen added“Theoretical trusts have more limitations than other types of banks when it comes to business activities, but the difference has faded in recent years.”
Former Coinbase Exec notes app improvement
Youngblood said Coinbase’s retail application has improved significantly since he stopped working in the exchange in 2022. “When I was working there in 2022, before I left, it wasn’t good. Features, such as the Coinbase Debit Card, didn’t work well,” Youngblood said.
“You can really say that they rent some top engineering talent,” Youngblood said.
Related: AI agents need crypto to work in financial markets: Coinbase Exec
It came as many other crypto companies also applied for the National Trust Charter.
On July 1, Stablecoin Issuer Circle has applied to establish A National Trust Bank in the US. A few days later, Ripple Labs applied For the same license.
Ripple Labs CEO says Brad Garlinghouse if The license was approvedIt will be a “new (and unique!) Benchmark for confidence in the Stablecoin market.”
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