Coinbase’s Federal Trust Charter Takes Effect for Custody Business

Coinbase National Trust Company’s federal charter became effective Nov. 6. The authorization permits fiduciary digital-asset custody under federal supervision and confines the entity to trust-company business.

The Office of the Comptroller of the Currency (OCC) approved the charter April 2, and its public record lists it as consummated and effective Nov. 6. Coinbase announced final approval Monday, Nov. 9. The charter permits the company to safeguard assets in a fiduciary capacity, with institutional customers as its main focus, and to handle transactions tied to fiat or digital assets in custody accounts.

Coinbase intends to shift all current custody operations from its New York-regulated subsidiary, Coinbase Custody Trust Company, LLC, to the federal trust during a three-year transition. Custody clients may access staking, prime trading and prime financing through Coinbase affiliates; the federal trust itself will not offer those services.

The charter does not authorize conventional retail banking. Under the approved plan, fiat held for custody clients would be kept in “for benefit of” accounts at third-party banks, and stablecoin issuance was not included.