The Office of the Comptroller of the Currency has conditionally approved five national trust bank charters for firms focused on digital assets, in a move that brings more crypto-related activity into the federal banking system but under supervisory constraints.

The U.S. Treasury Department agency conditionally approved two new national trust bank charters for Circle and Ripple, and conditionally approved applications from BitGo, Paxos, and Fidelity Digital Assets that would convert the companies’ existing state trust bank charters into national charters.

If formally approved, the charters would clear the way for the crypto-asset businesses to apply for Federal Reserve accounts that could be used to settle transactions in U.S. dollars and would allow the firms to obtain state-issued money-transmission licenses. 

While the charters would allow the companies to manage customer assets and more rapidly settle payments, the firms would not be allowed to accept cash deposits or make loans. 

“New entrants to the federal banking sector are good for consumers, the banking industry, and the economy,” said Comptroller of the Currency Jonathan Gould said in a statement.

Read more from the OCC here

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