Crypto Exchange Coinbase asked for a Charter of the National Trust Company from the office of the Currency Controller (OCC), joining an increasing number of American cryptography companies pursuing the same license.
“Coinbase makes an important step to expand our commercial capacities and our regulatory surveillance beyond the existing framework, paving the way for innovation and the growth of the construction of a modern financial system powered by digital assets”, Coinbase said in a declaration of Friday.
Coinbase continues the license to “fill the gap” with tradfi
According to Coinbase, the pursuit of the license is part of its strategy “to fill the gap between the cryptographic economy and the traditional financial system”. However, it has no interest in modifying the intervention center of its operations:
“Coinbase does not intend to become a bank. It is our firm conviction that the clear rules and the confidence of our regulators and customers allow Coinbase to innovate with confidence while ensuring appropriate surveillance and security. ”
Luke Youngblood, a former Coinbase employee who directed the creation of Coinbase Jaunter Awards, explain In a podcast published on Friday that the license would allow Coinbase to “offer a ramp, off-rap ramp, and to no longer use partner banks on ramps, outstanding ramps”.
Coinbase said that the license approval would allow the exchange to develop beyond day care, open the door to payments and other related offers within the framework of clearer regulatory directives.
However, the political commentator Brendan Pedersen added“The trusts have theoretically more limits than other types of banks with regard to commercial activities, but the distinction has blurred over the years.”
Old improvement in the application of Coinbase notes notes
Youngblood said that the Coinbase retail application has improved considerably since he had ceased to work in 2022. “When I worked there in 2022, before leaving, it was not very well. The features, like the Coinbase debit card, did not work very well,” said Youngblood.
“You can really say that they hired superior engineering talents,” said Youngblood.
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It occurs because several other crypto companies have also recently requested the national trust charter.
On July 1, the Stablecoin transmitter circle asked to establish a national trust bank in the United States. A few days later, Ripple Labs asked for the same license.
The CEO of Ripple Labs, Brad Garlinghouse, said that if the license was approved, it would be a “new reference (and unique!) For confidence in the Stablescoin market”
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