- Coinbase plans to expand into banking by exploring a US federal bank charter application.
- A US bank license could allow Coinbase to offer deposits, loans, and other banking services.
- Coinbase joins crypto firms like Paxos and Circle, eyeing deeper integration with US finance.
Coinbase, the publicly listed cryptocurrency exchange in the United States, is moving to secure a federal bank charter from the US government. Company representatives said no final choice regarding the US federal bank charter exists, yet the possibility is still being examined. This alignment fits into developing patterns across the digital asset sector because companies now prefer to enter traditional financial systems integrations.
Economic reports indicate that Coinbase is among several crypto companies, including Circle, BitGo, and Paxos, seeking bank charters for service expansion. The charter Coinbase pursues would allow the exchange to deliver banking functions such as accepting customer deposits and providing loans, subject to the oversight of federal financial regulators.
Stablecoin regulation prompts Coinbase and Other Firms interest
The US regulatory changes involving stablecoins have caused crypto firms to focus more on obtaining bank charters. The Office of the Comptroller of the Currency (OCC) has already given Paxos preliminary yet conditional approval for obtaining a national bank charter.
Two legislative bills, STABLE and GENIUS, function as significant forces defining stablecoin oversight. Under the STABLE Act, the federal government plans to monitor stablecoins through reserve separation and a two-year ban on self-issued asset-backed stablecoins
Even as it establishes two regulatory approaches, the GENIUS Act actively supports stablecoins issued by US-based entities to boost the dollar’s global influence. The current regulatory policy shift motivates businesses to achieve a better regulatory presence through banking license acquisitions.
A banking charter enables crypto companies to gain legitimacy and meet anti-money laundering requirements and reserve obligations more efficiently.
Tighter oversight and potential risks
While the bank charter opens doors for broader operations, it also introduces stricter compliance responsibilities. Federal charters must adhere to detailed reporting standards and be frequently inspected by companies.
Anchorage Digital faces an investigation from the Department of Homeland Security due to its status as one of the limited federal bank-charter holders in the crypto sector.
Coinbase does not reveal its reasons for obtaining the charter as it continues to develop its operations across retail and institutional markets.. As US regulators shift toward more apparent legal structures for digital assets, companies like Coinbase aim to adapt by aligning with traditional financial norms. The outcome of this consideration could significantly impact how crypto firms position themselves in the evolving landscape of financial services.
