Bridge Secures Conditional Authorization for National Trust Banking Charter
Bridge, the stablecoin enterprise recently taken over by payment powerhouse Stripe, revealed on Tuesday that it has secured conditional authorization from the Office of the Comptroller of the Currency (OCC) for a national trust banking charter. This approval, once fully finalized, will empower Bridge to manage digital assets, develop and issue its own stablecoins, and maintain stablecoin reserves.
“The emergence of stablecoins as foundational financial infrastructure is undeniable. Institutions require clear regulations, robust operational frameworks, and scalable systems to operate confidently. A national trust bank creates this essential groundwork.”
The approval of Bridge is in line with conditional permits previously granted to other notable firms in the stablecoin and cryptocurrency space, including Circle, Ripple, and Paxos, which also received similar endorsements from the OCC last December. Additional significant contenders like the publicly listed cryptocurrency exchange Coinbase and Trump-affiliated World Liberty Financial have also applied for their respective national trust banking charters.
Bridge submitted its charter application in October, reflecting a surge in such requests following the OCC’s decision in May, which confirmed that banks are allowed to hold and manage cryptocurrencies for clients. Moreover, the enactment of the GENIUS Act in July laid the groundwork for regulations governing stablecoin issuance and trading.
Regulatory Scrutiny and Industry Response
However, these applications are now facing scrutiny from significant banking lobby groups, who have called on regulators to adopt a more measured approach in approving new charters. A letter from the American Bankers Association dated February 11 urged the OCC to ensure that safety and soundness standards are robust and widely understood during this period marked by swift innovation, calling for increased transparency throughout the charter application process.
The ongoing friction between traditional banking institutions and the cryptocurrency sector has intensified particularly around the topic of stablecoin yields, as highlighted in discussions surrounding the crypto market structure bill known as the CLARITY Act. Supporting the stablecoin movement, Senator Cynthia Lummis, recognized for her favorable stance towards cryptocurrency, urged conventional banks to better embrace the changing landscape, as the stablecoin sector has now ballooned to a remarkable $308 billion in circulating supply, based on insights from DefiLlama.
