Five crypto institutions' trust bank licenses receive conditional approval, further integrating crypto with traditional finance

BlockBeats News, December 13 — The Office of the Comptroller of the Currency (OCC) in the United States has conditionally approved trust bank licenses for five institutions: Ripple, BitGo, DigitalAssets, Paxos, and Circle. “Conditional approval” is a preliminary recognition, indicating that the OCC has reviewed the application and believes the company generally meets regulatory requirements (such as capital adequacy, risk management framework, and business plans), but it is not yet a final license. The companies must satisfy specific conditions within a set timeframe to convert their status to full operational status. Once all conditions are met, the OCC will issue a final, unconditional national trust bank license, allowing the company to immediately exercise trust bank powers, mainly including: expanding core business operations, managing customer assets as a trustee, processing payments and settlements, custody of digital assets (such as stablecoin reserves), and providing related financial services. However, a trust bank license is different from a full-service bank, as it cannot accept deposits or issue loans. They can apply for a Federal Reserve master account to accelerate clearing and access traditional financial systems, further promoting the integration of crypto and traditional finance.