Zerohash Seeks National Trust Bank Charter
Zerohash is actively seeking a national trust bank charter from the Office of the Comptroller of the Currency (OCC), aiming to enhance its operations as a federally regulated trust institution. This initiative will enable the company to broaden its range of services in accordance with federal regulations, particularly those outlined in the GENIUS Act.
Company Background and Clientele
Since its inception in 2017, Zerohash has positioned itself as a vital blockchain infrastructure provider catering to both financial institutions and fintech companies, facilitating the integration of cryptocurrency services like trading, custody solutions, and stablecoin transactions. Some of its prominent clients include well-known organizations such as Morgan Stanley, Franklin Templeton, and Stripe.
Strategic Alignment and Application Submission
Stephen Gardner, the company’s Chief Legal and Compliance Officer, observed that pursuing a National Trust Bank Charter aligns with their strategy to enhance global licensing options and to continue diversifying their offerings. In February, Zerohash, alongside competitors Morgan Stanley and PAYO Digital Bank, submitted its application for this charter, which, if granted, would allow it to provide federally regulated services including custody and asset safekeeping for financial entities.
Industry Trends and Regulatory Context
The trend of crypto firms applying for national trust bank charters has gained momentum, particularly after the enactment of the GENIUS Act in July, which has increased interest in this regulatory framework for stabilizing the operations of companies involved in stablecoin and custody services. Other major players like Coinbase and World Liberty Financial— the latter notably supported by the Trump family—have also sought similar applications under the previous administration.
Controversies and Criticisms
While the OCC has issued conditional licenses to various organizations, including major names such as Bridge, Crypto.com, Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos, the process has not been free from controversy. Critics, including Senator Elizabeth Warren, have expressed concerns regarding transparency, specifically regarding potential foreign investments linked to some of these applicants, including World Liberty’s pending charter application.
