Crypto.com is looking to offer federally regulated custody services for digital assets treasuries in the U.S. The Singapore-based exchange has applied to acquire the registration to do so from the U.S. Office of the Comptroller of the Currency (OCC).
An official announcement from Crypto.com said the move marks its latest step towards the industry’s regulatory and consumer protection efforts.
“Building the Crypto.com product and service portfolio through regulated and secure offerings has been our focus since day one. We are excited to take this next step by filing for a National Trust Bank Charter,” the exchange said in its statement.
The charter essentially acts as a federal license that allows firms to function as a “limited-purpose trust bank” that offers asset holding, managing and safeguarding assets for clients rather that taking deposits or sanctioning loans.
If the application is accepted by the OCC, Crypto.com looks to establish itself as a
custody service destination of choice, particularly for digital asset treasuries, ETFs, and other institutional investors.
The timeline for the OCC’s decision on Crypto.com’s application remains unclear.
Crypto.com is not the first exchange to have filed to secure this OCC registration. Earlier this month, Coinbase also announced that it had applied for the National Trust Company Charter for the OCC.
As per reports, BitGo and Circle are other crypto firms that are planning to apply for this licence. Meanwhile, Anchorage Digital Bank and stablecoin issuer Paxos have secured the OCC registrations.\
In August, however, Five major U.S. banking and credit union associations urged the Office of the Comptroller of the Currency (OCC) to delay approvals of national bank charters for crypto firms, warning that the move could upend existing regulatory frameworks and pose systemic risks.