Five Crypto Firms Win Initial Approvals as Banks, Including Ripple, Circle, BitGo

Source: CryptoNewsNet Original Title: Five Crypto Firms Win Initial Approvals as Banks, Including Ripple, Circle, BitGo Original Link: Five digital asset firms have received conditional approvals to become federally chartered banks by the Office of the Comptroller of Currency (OCC) in a major step to bring U.S. dollar stablecoin issuers under federal regulatory oversight.

Blockchain firm Ripple and Circle’s First National Digital Currency Bank are on the list, which also includes BitGo, Fidelity Digital Assets and Paxos, each having previously operated under state charters.

The OCC is the only federal agency that charters banks and trusts, and this surge in approvals potentially marks a major turning point in crypto banking. The regulator has shifted from a crypto-resistant stance to a more friendly approach.

“The OCC will continue to provide a path for both traditional and innovative approaches to financial services to ensure the federal banking system keeps pace with the evolution of finance and supports a modern economy,” said a statement from the agency.

If the newly approved trust banks can meet agency expectations, they’ll permanently join about 60 regulated institutions with such charters, which allow for fiduciary activities including custody.