OCC Conditionally Approves Five National Trust Bank Charters

TLDR:

• Two de novo national trust banks, including Ripple, receive conditional federal approval.
• Three state trust companies convert to national trust banks under OCC supervision.
• New entrants increase access to credit, services, and financial products for consumers.
• Federal oversight ensures consistency, governance, and risk management across all banks.

The Office of the Comptroller of the Currency has granted conditional approval to five national trust bank applications, signaling growth within the federal banking system. 

These institutions, once fully approved, will join approximately 60 other national trust banks already supervised by the OCC. Each application underwent a detailed evaluation to ensure compliance with statutory and regulatory standards.

According to the OCC, these approvals provide consumers with increased access to financial products and services while encouraging competition within the banking industry. 

Comptroller Jonathan V. Gould emphasized that the federal banking system benefits from a dynamic mix of traditional and innovative institutions that meet modern financial needs.

De Novo National Trust Banks Enter the Federal System

Two de novo national trust bank applications received conditional approval: First National Digital Currency Bank and Ripple National Trust Bank. 

The OCC reviewed each application individually, assessing governance structures, operational readiness, and compliance measures. This review process aligns with the rigorous standards applied to all charter applications.

The OCC noted that these approvals support a competitive financial ecosystem. New entrants provide consumers with additional credit options and services, fostering a diversified banking environment. 

These banks are positioned to contribute once they meet the conditions outlined by the agency.

These additions will integrate into a federal banking system comprising over 1,000 institutions, which collectively manage more than $17 trillion in assets and administer over $85 trillion. 

Their operations currently account for approximately 67 percent of U.S. banking activity, highlighting the significance of these new entrants.

State Trust Conversions Strengthen Federal Oversight

The OCC also conditionally approved conversions for three state trust companies: BitGo Bank & Trust, National Association, Fidelity Digital Assets, National Association, and Paxos Trust Company, National Association. 

Upon completing the OCC’s requirements, these institutions will operate under federal supervision.

Each conversion application was assessed on its own merits, ensuring the organizations meet governance, risk management, and operational standards expected of national trust banks. This process ensures consistent oversight across the federal system.

The OCC reaffirmed that these approvals benefit consumers and the economy by expanding access to services and credit. 

Once final conditions are satisfied, these institutions will contribute to a more competitive and innovative federal banking framework.

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