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

December 13, the Office of the Comptroller of the Currency (OCC) has conditionally approved trust bank licenses for five institutions: Ripple, BitGo, DigitalAssets, Paxos, and Circle. “Conditional approval” is a preliminary recognition, indicating that OCC has reviewed the application and considers the company to generally meet regulatory requirements (such as capital adequacy, risk management framework, and business plan), but it is not an final license. The company must satisfy specific conditions within a specified timeframe to transition to full operational status. Once all conditions are met, OCC will issue an final, unconditional national trust bank license, allowing the company to immediately exercise trust bank powers, which mainly include: expanding core business operations, managing client assets as a trustee, handling payment settlements, custodial digital assets (such as stablecoin reserves), and providing related financial services. However, trust bank licenses differ from full-service banks and 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.