BitGo Nearing Federal Bank Status with OCC Approval

BitGo has received conditional approval from the Office of the Comptroller of the Currency to become a national trust bank, pending final approval to expand its cryptocurrency custody services.

The shift to a federal charter could streamline BitGo’s operations, eliminating state-by-state licensing, and solidify its position in the regulated crypto market landscape.

BitGo to Transform South Dakota Trust into Federal Bank

BitGo received conditional approval from the OCC to transition its South Dakota-registered trust into a national trust bank. Final approval will allow BitGo to offer regulated crypto services under a unified federal charter, eliminating the need for state licensing.

Upon receiving full regulatory approval, BitGo will be able to custody digital and certain non-deposit financial assets and provide a variety of crypto-related services. Stablecoins under BitGo custody must adhere to regulations outlined in the GENIUS Act.

“The cryptocurrency community shows cautious optimism towards BitGo’s banking transition, recognizing the potential for more comprehensive and regulated crypto services.” Officials have yet to release reactions, but BitGo’s move is seen as aligning with industry trends for federal oversight in crypto banking. Five crypto firms, including Ripple, seek banking charter approval.

Bitcoin Decline Amid BitGo’s Federal Charter Move

Did you know? The Office of the Comptroller of the Currency has historically granted trust-to-bank conversions since 1978, impacting financial services evolution.

The current price of Bitcoin stands at $90,332.42, showing a 2.25% decline over the past 24 hours, as per CoinMarketCap. Its market cap is recorded at $1.80 trillion, and it leads with a 58.77% market dominance, despite a significant downtrend over 90 days.

Experts from the Coincu research team suggest that BitGo’s transition to a federally chartered entity could enhance compliance frameworks in crypto. They believe this move aligns with industry shifts towards increased regulatory oversight and could pave the way for other crypto entities seeking federal charters.