Coinbase’s Federal Trust Charter Takes Effect

Coinbase National Trust Company’s federal charter took effect November 6, bringing its institutional digital-asset custody operations under the Office of the Comptroller of the Currency’s supervision. Coinbase announced final approval on November 9, completing the move from conditional approval granted in April.

The charter permits the company to provide fiduciary custody of digital assets, but it does not authorize ordinary retail deposits or conventional commercial lending. Coinbase National Trust Company is a separate trust entity; the approval does not move retail customers’ accounts into it. Coinbase’s U.S. individual user agreement identifies Coinbase, Inc. as the retail customer’s contracting entity.

The OCC’s decision outlines a planned transfer of the institutional custody business from Coinbase Custody Trust Company, which operates under New York oversight, to the national trust during its first three years. The decision sets out the migration plan, but neither it nor Coinbase’s announcement confirms that assets or clients have already transferred. No total transferred or client-by-client schedule was reported.

The new trust must maintain at least $60 million in Tier 1...