Crypto.com filed an application with the OCC to receive a National Trust Bank Charter. The exchange doesn’t plan to function as a bank; rather, it hopes to greatly expand its custody business and related offerings.
A seal of federal regulatory approval could entice more institutional clients to employ the firm’s custody solutions, potentially enabling new staking options. Its CRO token briefly spiked after the news, but a few lingering questions remain.
Does Crypto.com Want to Be a Bank?
The Web3 and banking sectors have been inching closer together in recent months, and lots of crypto-native firms are joining the trend.
In July, Ripple filed for a bank charter, Coinbase did the same earlier this month, and now, Crypto.com is throwing its hat into the ring:
“Building the Crypto.com product and service portfolio through regulated and secure offerings has been our focus since day one. We are excited to take this next step by filing for a National Trust Bank Charter and look forward to continuing to pursue opportunities to provide customers with the trusted services they require,” CEO and co-founder Kris Marszalek said in a press release.
Crypto.com’s statement about how a banking license could improve its business was surprisingly vague. The firm seemed less interested in actually serving as a TradFi-style bank than expanding its custody services.
To be clear, though, the exchange claimed that this new license won’t interfere with its ordinary operations for crypto clients.
By becoming OCC-regulated, the company could become a more attractive custody solution for various institutional investors, including digital asset treasury (DAT) firms and ETFs.
Ideally, it can leverage its new custody role to offer more related services, like token staking across several blockchains.
Cautious Community Optimism
Whatever Crypto.com plans to do with this banking license, the community seems intrigued by it. The firm’s CRO token briefly spiked in value after the announcement, although most of the gains quickly vanished:
Cronos (CRO) Price Performance. Source: CoinGecko
The OCC has become much more crypto-friendly under the Trump Administration, granting banks new abilities to custody digital assets. If this is anything to go by, it seems likely that Crypto.com will win its desired banking license.
Still, this spree of new banking integrations could have some weird consequences for the market.
Two months ago, a few crypto-aligned billionaires bragged that they could leverage political favors to win a license quickly, and this took place as advertised. Even prominent YouTubers are beginning to create their own crypto banking platforms.
In other words, the OCC’s string of approvals has allowed some truly unlikely candidates to enter the sector. Whether or not Crypto.com plans to use its license as such, the banking industry may be changing forever. Chaotic periods like that can cause some bumpiness in the markets.
