Coinbase files for National Trust Charter (NTC) with the Office of the Comptroller of the Currency (OCC) as it aims to expand its offerings beyond custody into payments and trust-based financial services. The move reflects a trend among major crypto firms seeking closer alignment with traditional banking regulations.

If approved, the NTC could pave the way for Coinbase to launch new products with regulatory clarity, fostering broader institutional adoption. The company’s Chief Legal Officer, Paul Grewal, believes federal recognition would provide consistency and opportunity on a national level for crypto users.

Coinbase’s application mirrors efforts by other crypto firms like Circle and Ripple, who have also sought similar charters focusing on stablecoin issuance and payment infrastructure. Regulatory shifts in the US have shown a growing willingness to integrate blockchain-based services into the mainstream financial system.

Despite its federal ambitions, Coinbase clarifies it does not aim to become a bank. The company’s Stand With Crypto initiative challenges banking industry attempts to restrict access to interest-bearing stablecoins. In response, banking associations have raised concerns about allowing uninsured institutions to issue stablecoins, fearing regulatory loopholes and capital diversion from traditional bank deposits.

Read more at Yahoo Finance: Does Coinbase Want To Become a Bank?