Crypto.com has received "conditional" approval from the Office of the Comptroller of the Currency (OCC), bringing it one step closer to bank-level status. If finalized, the approval is expected to accelerate competition in "regulated custody," where crypto companies directly store and manage customer assets under federal oversight.
Crypto.com announced that it has received conditional approval from the OCC to establish a national trust bank. Accordingly, the company will establish Foris Dax National Trust Bank, which, pending final approval, will operate under the name Crypto.com National Trust Bank.
A one-stop regulated custody solution, including Cronos (CRO) staking.
Co-founder and CEO Kris Marszalek described this development as a reflection of the company's commitment to regulatory compliance and customer protection. He emphasized that upon final approval, Crypto.com will establish itself as a "one-stop" qualified custodian operating under the "gold standard of federal oversight."
The company has outlined plans to provide custody services within the regulatory framework, as well as asset staking and trade settlement services across multiple blockchains and digital asset protocols. This includes its own network, Cronos (CRO). Industry sources believe that if National Trust Bank approval is confirmed, it could serve as a foundation for reducing reliance on external custodians and accelerating payment and settlement speeds.
Circle, Ripple, BitGo, Fidelity, and Paxos join the OCC approval rush.
However, Crypto.com's move isn't unique. Over the past year, the OCC has conditionally approved national trust bank charters for several digital asset companies. These include Circle's First National Digital Currency Bank, Ripple National Trust Bank, BitGo Bank & Trust, Fidelity Digital Assets, and Paxos Trust Company.
Recently, Bridge, a stablecoin infrastructure company acquired by Stripe, also announced that it had secured conditional approval. This is interpreted as a signal across the industry that the "federally supervised trust bank" model is emerging as a pathway for digital asset businesses to enter the institutional market.
The US banking industry is pushing back… The ABA says it must halt until the GENIUS Act regulations are clarified.
The traditional financial sector is also exerting strong restraint. Last week, the American Bankers Association (ABA) urged the OCC to "pause" further approvals for cryptocurrency and stablecoin companies. Their argument is that expanding authorizations is premature until the regulatory framework related to the GENIUS Act, which governs stablecoins, becomes clearer.
The ABA argued that the OCC should not proceed with the application unless the "full scope of the regulatory burden," including any obligations that may arise during future rulemaking under the GENIUS Act, is clearly defined. The ABA also warned that unresolved safety and soundness issues remain if a national trust bank, which is not covered by deposit insurance, focuses on digital assets. Key concerns included segregation of customer assets, potential conflicts of interest, cybersecurity risks, operational resilience, and how the bank would handle failures.
Interest in trust bank licenses is growing…CROs fall 20% in a month.
Nevertheless, interest in pursuing National Trust Bank status is growing. In January, World Liberty Financial (WLFI) announced that one of its subsidiaries had submitted an application to establish a National Trust Bank focused on stablecoin operations.
Meanwhile, market reactions are mixed. According to CoinGecko, Crypto.com's native token, Kronos (CRO), is trading at $0.074 (approximately 107 won, based on the exchange rate of 1,445 won per dollar) at the time of writing, down approximately 20% over the past month. Industry insiders believe that expanding regulated custody could enhance business stability and institutional trust in the long term, but in the short term, the time it takes for approval and the direction of regulation could increase market volatility.
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Crypto.com's "conditional" approval from the OCC is more than just good news. The market is now shifting from "trading volume" to who can hold and settle customer assets under federal oversight , and who better understands the regulations, risks, and structures that arise in the process.
The "regulated custody" trend, which has seen Circle, Ripple, BitGo, Fidelity, and Paxos jump into the fray, signals the need for a higher level of analytical skills among investors.
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🔎 Market Interpretation
Crypto.com has received conditional approval from the OCC to establish a "National Trust Bank," marking the beginning of a race among digital asset companies to become a "federally supervised trust bank."
Circle, Ripple, BitGo, Fidelity, and Paxos are also following suit, signaling a reorganization of the regulated custody market around a standardized, institutional infrastructure.
- On the other hand, the American Bankers Association (ABA) is demanding a halt to the expansion of authorizations until the sub-regulations of the GENIUS Act are clarified, and regulatory uncertainty and safety debate coexist.
💡 Strategy Points
- Since 'conditional approval' is a step before final approval, the key variables for actual business expansion (one-stop custody, staking, payment/settlement) are the timing of final approval and whether conditions are met.
- Once approved, the structure is likely to be advantageous in attracting institutional clients (financial institutions and funds), as it will reduce dependence on external trustees and increase payment and settlement efficiency.
In the short term, factors such as the time required for approval, changes in regulations linked to the GENIUS Act, and strengthened requirements for customer asset separation, cybersecurity, and bankruptcy processing may contribute to volatility (CRO -20% for one month based on the article).
📘 Glossary
- OCC (Office of the Comptroller of the Currency): A regulatory agency that supervises and licenses national banks/trust banks at the U.S. federal level.
- National Trust Bank: Unlike commercial banks based on deposit insurance, it mainly provides 'custody'-oriented services and is subject to federal supervision.
Qualified Custodian: A status of "authorized trustee" that can store institutional investor assets in compliance with laws and regulations (trust and compliance are key)
- Regulated Custody: Custody services with regulatory oversight and internal control systems (considered essential infrastructure for institutional capital inflow)
Staking: A structure where assets are deposited for network verification/operation and rewards are received (customer asset handling methods are important depending on the regulatory and custody structure).
Trade Settlement: The process by which the actual assets/payments are transferred after the transaction is concluded, thereby completing the transaction.
💡 Frequently Asked Questions (FAQ)
Q.
Is Crypto.com's "conditional approval" final?
No. The OCC's conditional approval is an intermediate step, meaning that "establishment/licensing has been granted, but additional requirements must be met before final approval." Final approval and actual operation are only possible after meeting requirements such as capital, internal controls, risk management, and operational readiness.
Q.
What will change for Crypto.com when it becomes a National Trust Bank?
The key point is the growing likelihood of establishing itself as a "qualified custodian that directly stores and manages customer assets under federal oversight." Building on this, the plan is to provide services such as custody, staking (including CROs), and transaction settlement/settlement within a regulatory framework, all in a "one-stop" manner. However, this may differ from the deposit- and loan-centric model of traditional banks.
Q.
Why does the American Banking Association (ABA) oppose this expansion of authorization?
The ABA believes the scope of the regulatory burden remains unclear until the detailed provisions of the GENIUS Act related to stablecoin regulation are finalized. Furthermore, it is concerned that "safety and soundness" issues, such as segregation of client assets, conflicts of interest, cybersecurity, operational resilience, and bankruptcy resolution, remain insufficiently addressed when trust banks, which are not covered by deposit insurance, focus on digital assets.
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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