Coinbase Applies For National Trust Company Charter

Coinbase has applied for a National Trust Company Charter as part of its strategy to bridge the gap between the cryptocurrency and traditional financial systems. In a statement, Coinbase emphasized its aim to expand its business capabilities while maintaining regulatory oversight, asserting that they do not intend to transition into a bank. Former Coinbase executive Luke Youngblood highlighted that the charter would facilitate Coinbase's operations, enabling the platform to offer integrated on-ramps and off-ramps for digital assets and reduce reliance on partner banks. Youngblood noted improvements in the Coinbase retail application, pointing out enhancements in features since his departure in 2022. Approval of the National Trust Charter would also allow Coinbase to extend beyond custody services into payment solutions under clearer regulatory frameworks. Several other crypto firms have pursued similar charters, reflecting a growing trend in the industry for clearer regulations and operational frameworks.

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