Modern Treasury’s Proposal for a National Trust Bank
Modern Treasury, a firm focused on payments infrastructure, has submitted a request to the Office of the Comptroller of the Currency (OCC) to create a national trust bank in the United States. This proposed institution, known as Modern Treasury National Trust Bank, aims to provide custodial services for digital assets, particularly stablecoins, alongside related fiat services.
Operational Intentions
In an official statement released on Monday, the company outlined its intention to operate as a limited-purpose nationally chartered bank under federal regulations.
If granted approval, the new bank would allow customers to securely store and transfer stablecoins and fiat currencies using a comprehensive service. However, it will not engage in issuing stablecoins or providing loans.
“We view stablecoins as a crucial foundation for the economic framework of the future,” stated Matt Marcus, co-founder and CEO of Modern Treasury, highlighting the integration of stablecoins into the firm’s existing payment systems.
Company Background and Industry Trends
The establishment of Modern Treasury National Trust Bank would be alongside the company’s successful history, having processed over $600 billion in payments for numerous organizations while maintaining a distinct operational separation from its current payment services.
This initiative aligns with a growing trend among cryptocurrency and payments companies applying for national trust bank charters. Similar moves have been noted, with companies like Bastion and Ripple receiving conditional approvals, while Circle and BitGo have finalized theirs. Other players in the space, including Kraken’s parent company Payward, Zerohash, and Block, are also in the process of applying for trust bank charters.
The momentum surrounding these applications reflects an increasing interest in the regulation and integration of digital assets within the traditional financial system.
