The Office of the Comptroller of the currency (OCC) has granted conditional approval to national trust bank charters for five companies focused on digital assets.
The move opens the door for the companies to operate as national trust banks, along with about 60 others overseen by the OCC.
The approved companies include two new charters: First National Digital Currency Bank and Ripple National Trust Bank.
Three others are conversions of state trust companies: BitGo Bank & Trust, National Association; Fidelity Digital Assets, National Association; and Paxos Trust Company, National Association.
They all must meet OCC requirements to finalize their charters.
The OCC says they follow a rigorous review process based on legal and regulatory standards.
Comptroller Jonathan V. Gould called the decisions a major boost for the banking industry.
“New entrants to the federal banking industry are good for consumers, the banking industry and the economy.
They provide consumers with access to new products, services and credit sources and ensure a dynamic, competitive and diverse banking system. The OCC will continue to provide a path for both traditional and innovative approaches to financial services to ensure the federal banking system keeps pace with the evolution of the financial world and supports a modern economy.”
The federal banking system, overseen by the OCC, includes more than 1,000 institutions that handle 67% of U.S. banking activity and more than $17 trillion in assets.
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Featured image: Shutterstock/Digital_Art/Sensvector