OCC Approves U.S Banks to Hold Bitcoin, Ethereum, Solana, and XRP for Blockchain Network Fees

U.S banks can hold crypto to pay blockchain network fees and support operations.

Banks can use crypto for testing platforms and settlement without regulatory uncertainty.

The OCC guidance allows banks to integrate blockchain while maintaining risk controls.

The Office of the Comptroller of the Currency has approved the use of select cryptocurrencies on the balance sheets of national banks. The decision allows banks to hold Bitcoin, Ethereum, Solana, and XRP for operational needs tied to blockchain activity

The update forms part of Interpretive Letter 1186. It outlines how banks may apply these assets in daily functions. The announcement marks a shift that increases clarity for institutions preparing to expand blockchain services. Earlier this year, OCC allowed banks to offer crypto custody and stablecoin services under new rules.

Banks Cleared to Use Crypto for Transaction Settlements

The new guidance permits banks to possess and use crypto assets to complete blockchain-based settlements. This includes paying fees on networks such as Ethereum and Solana. The approval covers tokenized platforms that rely on native tokens to validate and process transactions. Many banks previously depended on intermediaries to access these networks. This created delays and raised compliance concerns. The updated position removes those barriers and enables direct participation in on-chain settlement systems.

The OCC also confirmed that these assets may support testing environments. This gives institutions the ability to evaluate blockchain platforms without regulatory uncertainty. Moreover, in May, OCC allowed U.S. banks to offer crypto services including custody and trading using third-party providers under new guidance. The decision follows earlier actions that allowed stablecoin partnerships between banks and fintech firms. It increases the range of authorized activities at the same time as overseeing them.

Risk Controls Required for Crypto-Related Operations

The regulator stressed that banks must uphold strict risk standards. Institutions must maintain internal controls and cybersecurity protections. They must also align all activity with the current legal framework for national banks. The requirement applies to both operational use and internal testing. The OCC noted that holding small amounts of crypto is acceptable when tied to legitimate business needs. This includes supporting tokenized transaction rails or smart-contract services.

Banks may buy and sell assets held in custody when directed by customers. They may also use service providers for crypto-related functions. This continues earlier guidance issued in 2020 and updated in prior letters.

Regulatory Shift Encourages Broader Blockchain Integration

The decision removes a major obstacle for banks developing blockchain settlement or tokenization products. Without native tokens, banks could not settle transactions or test distributed ledger systems. The update aligns with efforts by other regulators to refine crypto rules. It also signals a growing interest in aligning traditional finance with digital asset infrastructure.

The change may accelerate the adoption of blockchain in banking operations across the United States. It offers a better direction to institutions that are seeking new settlement models. The advice is also an indicator of a developing regulatory landscape that attempts to balance innovation and regulation.