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Federal trust-bank charters shift crypto custody oversight to the OCC
The OCC has conditionally approved new trust-bank applications for Ripple and Circle’s proposed First National Digital Currency Bank, with additional pending filings including Zerohash.
Crypto custody is increasingly moving under federal trust-bank charters, putting crypto firms’ safeguarding of customer assets under the Office of the Comptroller of the Currency, a shift that Alan Lane says raises questions about whether regulators are simply changing, not removing, political risk. Lane, Silvergate’s former chief executive, said Silvergate survived withdrawals of roughly 70% of its demand deposits before political pressure drove it to choose liquidation, and he blamed the Biden administration for making continued operations untenable. He argued the bank remained “solvent and liquid” after the late-2022 outflows and that liquidation was announced on March 8, 2023 due to regulatory and political pressure. CryptoSlate notes the Federal Reserve’s inspector general reached a different conclusion in a September 2023 review, attributing Silvergate’s liquidation to concentration among crypto-industry depositors, rapid growth and funding risks, and significant weaknesses in governance and risk management. The Fed later confirmed in July 2024 that Silvergate completed its liquidation, repaid all customer deposits, and ceased functioning as a bank, and it also fined Silvergate $43 million for anti-money-laundering noncompliance. More than three years after Silvergate’s voluntary wind-down, federal trust-bank charters have become a path for crypto companies seeking an established custody framework with direct supervisory oversight, even as they may still rely on other banks for cash. CryptoSlate reports that the OCC’s December 2025 decisions included conditional approvals for Ripple and Circle’s proposed First National Digital Currency Bank, while Circle said on July 10 it received final approval to operate as Circle National Trust, with custody for itself and its affiliates at opening and reserve management planned for later. Additional OCC pending applications mentioned include Zerohash’s Aug. 19 submission and earlier 2026 filings from Payward National Trust Company, Agora National Trust Company, among others, in addition to conversions for firms such as BitGo, Fidelity Digital Assets, and Paxos.