Coinbase receives approval to become a trust bank in the US — Engadget

Cryptocurrency company Coinbase said it had received approval from the US Office of the Comptroller of the Currency to become a national trust bank, Engadget reports.

Limited banking status

This status is more limited than a full banking license. Coinbase will not be able to accept regular deposits or issue loans. At the same time, it will allow the company to provide payment and custody services, as well as expand its stablecoin business.

Coinbase called receiving the approval an important step for the company and the crypto industry. The company says it is the world’s largest custodian of crypto assets. It recently also entered into a partnership with Citigroup to convert stablecoins into conventional currency.

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Other holders of the status

Other digital asset companies, including Block and Wise, also sought to obtain a similar trust bank status. Before Coinbase, Circle Internet Group and Ripple were able to successfully complete the procedure.

According to Engadget, in 2022 and 2023, the US Securities and Exchange Commission filed lawsuits against Coinbase. The first concerned, according to the regulator, the illegal sale of unregistered securities, while the second concerned alleged violations of securities laws. In 2023, the company settled a $100 million case with the state of New York related to violations in the area of money transfers and other violations. Last year, Coinbase also suffered a hacker attack, after which the perpetrators demanded $20 million in exchange for not disclosing information.