Virtual Asset Companies Knock on U.S. Bank Doors... 13 Applications Awaiting Review by OCC

In the United States, there has been a surge in federal bank charter applications linked to virtual asset (digital asset) businesses. A total of 13 applications related to digital assets, including one from Kraken's parent company Payward, are currently awaiting review by the Office of the Comptroller of the Currency (OCC).

According to the status of 'Digital Assets Licensing Applications' released by the OCC on the 2nd (Korean time), there are currently 13 applications pending review.

The OCC publishes a separate list of pending applications from institutions planning to offer products or services related to digital assets. All 13 applications listed have been submitted since February of this year.

However, the types of businesses applying can be broadly categorized into two categories. One is the federal trust bank or company (National Trust Bank/Company) that limits its business scope to trust company activities related to digital asset custody, stablecoins, clearing, and settlement. The other is the general national bank that provides traditional banking services such as deposits and loans alongside digital asset services.

The most recent applicant, the digital asset payment and infrastructure company Zerohash, submitted an application for a federal trust bank charter for 'Zerohash National Trust Bank' on August 19.

Zerohash is also pursuing the establishment of a federal trust bank, focusing on digital asset and traditional asset custody, digital asset trading support, and staking.

Dakota National Trust Bank, which submitted its application on July 28, is also working towards establishing a federal trust bank.

Payward, Kraken's parent company, applied for a charter for 'Payward National Trust Company' on May 8. The bank being pursued by Payward is a non-depository federal trust company focused on trust activities, planning to offer services including digital asset custody, staking, trading support, and collateral management.

Catena Trust Bank has also applied for a federal trust bank charter, specifying in its application that its banking activities will be limited to trust company-related operations.

EDX Market Holding Company, which operates a digital asset exchange for institutions, is pursuing the establishment of EDX Trust, which is of the same type. EDX Trust plans to provide digital asset custody, asset management, and trading-related services as a federal trust bank, not as a general deposit and loan bank.

Stablecoin company Agora is also pursuing the establishment of 'Agora National Trust Bank'.

Global fintech company Payoneer's PAYO digital bank is also distinct from general commercial banks. PAYO Digital Bank plans to issue and redeem the dollar stablecoin 'PAYO-USD', manage reserve assets, and provide custody services for PAYO-USD and third-party stablecoins. The application date was February 23.

Lorum National Trust Bank has also applied for a federal trust bank charter. Lorum plans to provide inter-institutional clearing of dollars and tokenized assets, asset custody, and fund management services for foreign exchange and bonds, but has stated in its application that it will not engage in lending activities.

Bastion Platforms National Trust Company is also included in the OCC list. Bastion is pursuing a plan to convert its existing state-level trust company charter into a federal trust bank charter.

On the other hand, there are also cases where applications are being pursued for federal bank charters that encompass not only digital assets but also general banking services.

A representative example is global fintech company Revolut, which applied for the establishment of 'Revolut Bank US' on March 4.

Revolut's application scope includes not only buying and holding digital assets, staking, and remittances but also traditional banking services such as personal and business loans, credit cards, and deposits.

OpenReserve Bank is also a type that provides both general banking and digital asset services. In its application, it describes itself as a 'full-service national bank' and plans to offer loans, deposits, card issuance, and payment and settlement services.

The First National Bank of Cooper and CBW Bank, which are on the OCC list, are also examples of existing banks that are pursuing digital asset-related businesses.

The OCC manages this list based on whether the applicant plans to offer products or services related to digital assets in the future, rather than their existing business areas.

Jonathan Gould, OCC Commissioner, stated on August 19 (local time) at the Wyoming Blockchain Symposium that there has been an increase in bank charter applications related to digital assets.

According to Gould, of the 40 new bank charter applications received by the OCC in the past 18 months, 23 included business plans related to digital asset activities. He predicted that including digital asset-related businesses, such as payment stablecoins, in bank charter applications will become increasingly common in the future.

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