Crypto.com is making a significant move to expand its presence in the United States by applying for a federal trust bank license. This strategic step signals a growing trend among cryptocurrency firms to operate within established regulatory frameworks, aiming to offer more secure and compliant services to a broader range of clients.
Crypto.com's Bid for Federal Regulatory Clarity
Crypto.com, a prominent Singapore-based cryptocurrency exchange, has formally applied for a national trust bank license in the U.S. This federal approval, if granted by the Office of the Comptroller of the Currency (OCC), would enable the company to provide federally regulated custody and trust services. Unlike traditional banks that handle deposits and loans, a trust bank focuses specifically on holding, managing, and safeguarding client assets. This move positions Crypto.com to offer compliant services for digital asset treasuries, Exchange Traded Funds (ETFs), and various institutional and corporate clients, building on its existing trust license in New Hampshire.
A Growing Trend Among Crypto Innovators
Crypto.com's application is part of a broader industry shift, as several major cryptocurrency companies are increasingly seeking federal banking licenses in the United States. Firms like BitGo, Circle, Anchorage Digital Bank, Paxos, and Coinbase have either obtained or are pursuing similar national trust bank licenses. Anchorage Digital Bank has been operating under such a license since January 2021, and Paxos received preliminary approval in the same year. Coinbase, another industry giant, filed its own application, emphasizing its goal to launch new products with "regulatory clarity" rather than transforming into a traditional bank. This collective pursuit highlights a strategic imperative within the crypto sector to gain legitimacy, mitigate regulatory uncertainty, and enhance trust by operating under federal oversight.
