U.S. OCC approves trust bank licenses for five major institutions, accelerating the integration of crypto and traditional finance

【Blockchain Rhythm】On December 13, the Office of the Comptroller of the Currency (OCC) in the United States conditionally approved trust bank licenses for five institutions: Ripple, BitGo, DigitalAssets, Paxos, and Circle. This move marks a significant step forward in the compliance journey of crypto financial institutions.

“Conditional approval” sounds like a temporary status, but its practical significance is substantial. The OCC has reviewed these companies’ applications and determined that they generally meet regulatory standards in areas such as capital adequacy, risk management frameworks, and business plans. This is not a final license, but it is far from an empty title—companies must meet specific conditions within a set timeframe to upgrade to full operational status.

Once all conditions are satisfied, the OCC will issue the final unconditional national trust bank license. By then, these institutions will be able to exercise all trust bank powers. Their core businesses will expand significantly: managing client assets as trustees, handling payment settlements, custody of stablecoin reserves and other digital assets, and providing related financial services.

But there is a key detail—trust bank licenses and full-service banking licenses are not the same. With the trust bank license, these companies cannot accept deposits or issue loans. However, there is little regret in this, because these institutions can apply for a Federal Reserve master account, directly access traditional financial system clearing channels, greatly reducing transaction costs and settlement cycles.

What does this mean? The integration of crypto assets with traditional finance is accelerating. When mainstream financial regulators open channels for crypto institutions, the industry is getting closer to truly regulated operations.