Coinbase indicates that the Federal Reserve Bank of New York has upgraded the trust bank status of this largest cryptocurrency exchange in the United States from conditional approval to a formal license.

The largest cryptocurrency exchange in the United States, Coinbase (stock code: COIN), announced that the Federal Reserve Bank of New York (OCC) has upgraded its previously granted conditional trust bank status to a formal license. This means that the trust banks under Coinbase will now operate with a formal license.

Coinbase National Trust received preliminary approval in April this year, allowing the company to provide federally regulated custody and payment services, but it is not permitted to accept deposits or issue loans in the same manner as full-service commercial banks.

Coinbase indicates that over the past few months, the company has continuously improved its compliance system, recruited necessary personnel, and undergone reviews by regulatory authorities, ultimately obtaining the official trust bank license issued by OCC.

Coinbase is one of many cryptocurrency companies seeking to obtain the qualifications of a federal trust bank in the United States. This trend has further accelerated since the U.S. "Guidance on and Establishment of a National Innovation Framework for Stablecoins" (GENIUS Act) paved the way for federal trust institutions to issue compliant stablecoins.

During the tenure of U.S. President Donald Trump, OCC adopted a more open regulatory stance towards cryptocurrency companies and stablecoins, including granting conditional trust bank qualifications to World Liberty Financial under the Trump family.

Last month, OCC also issued a formal trust bank license to Ripple Company ( Ripple ).

Coinbase Vice Chairman Ryan VanGraag ( Ryan VanGrack ) stated in a statement: "For many years, we have been calling for the establishment of clear regulatory rules and strict supervision mechanisms. Today, our national trust bank license has been approved, which means that more of our business will fall under this regulatory framework."

He added, "The approval of OCC is another significant milestone in advancing the integration of digital assets into the core infrastructure of the U.S. financial system."

Cryptocurrency native companies have faced years of regulatory resistance before entering the U.S. banking system. During this period, federal agencies responsible for regulating banks, securities, and derivatives in the United States have consistently resisted allowing such companies to enter the traditional financial system, often treating these businesses with a lack of trust.

Meanwhile, the Independent Community Bankers Association of America ( Independent Community Bankers of America ) has filed a lawsuit against OCC, accusing the institution of issuing trust bank licenses to cryptocurrency companies beyond its statutory authority.