Digital asset firms are increasingly seeking direct access to the traditional financial system as regulatory clarity improves in the United States. The surge in applications for national trust bank charters highlights a broader shift toward institutionalisation and control within the crypto and fintech sectors.
A significant shift is occurring in the American financial landscape as cryptocurrency and fintech organisations are moving aggressively to secure federal banking charters. In just 83 days, 11 major companies, including Circle and Morgan Stanley, have either filed for or received conditional approval for national trust bank charters from the Office of the Comptroller of the Currency (OCC).
On March 4, 2026, Zerohash became the eleventh company on the list. This surge in regulatory activity highlights a strategic pivot for digital asset firms, as they transition from being dependent on infrastructure to owning it. Historically, crypto firms have relied on partnerships with established traditional banks to access the U.S. financial system. However, this relationship often comes with high costs and limited control. A federal charter allows these entities to bypass intermediaries, granting them a direct relationship with a single federal regulator and the authority to custody assets under a “gold standard” of oversight.
The OCC issues national trust bank charters governed by the National Bank Act. However, this is not a full commercial bank as its core business isn’t issuing loans or accepting customer deposits. Rather, it holds, manages and custodies assets on behalf of clients. So, why the race for a national trust bank charter? The recent momentum is driven in part by a new federal rule scheduled to take effect on April 1, 2026. This regulatory update aligns the language of the National Bank Act more closely with modern trust company operations, providing a clearer legal pathway for non-depository trust institutions. While these charters do not permit firms to take consumer deposits or issue traditional loans, they provide the essential legal framework required to handle institutional-grade custody, staking, and trade settlement for digital assets.
However, the rapid expansion of the federal banking perimeter has met stiff resistance from traditional financial institutions. The American Bankers Association (ABA) and the Bank Policy Institute (BPI) have voiced strong opposition, arguing that these “limited-purpose” charters allow crypto firms to offer bank-like services without the rigorous requirements of a full-service commercial bank, such as FDIC insurance and consolidated supervision. Critics have labelled these structures “Franken-charters,” suggesting they are assembled from regulatory components not originally intended to work together.
Despite this pushback, the OCC has maintained that integrating new entrants into the federal system fosters competition and innovation. For companies like Ripple, BitGo, and Paxos, which have recently navigated this process, the charter represents a bid for long-term survival and legitimacy in a volatile regulatory environment. As the April deadline approaches, the race for federal recognition continues to redefine the boundaries between traditional finance and the burgeoning digital economy.
What this means for the industry
• Crypto firms are moving toward regulatory integration
Securing federal charters allows digital asset companies to operate within established financial frameworks and gain greater legitimacy.
• Control over infrastructure is becoming a strategic priority
Owning regulatory access reduces reliance on traditional banking partners and provides greater operational independence.
• New charter models are reshaping the banking landscape
Limited-purpose trust charters are creating alternative pathways for fintech and crypto firms to enter the financial system.
• Regulatory competition is intensifying between traditional and digital finance
Pushback from established banks highlights growing tension as new entrants challenge existing regulatory structures.
• Institutional adoption of digital assets is accelerating
Clearer legal frameworks are enabling more sophisticated services such as custody, staking and settlement at scale.
