Bridge, a stablecoin platform acquired by Stripe in 2024, has received conditional approval from the Office of the Comptroller of the Currency to become a federally chartered national trust bank, the company announced.
Summary
- Stablecoins are digital currencies designed to maintain stable value, typically backed by reserve holdings such as U.S. dollars.
- Bridge stated that the federal charter would create “the regulatory backbone” companies need to deploy stablecoins securely and at scale.
- Ripple, Circle, BitGo, Fidelity Digital Assets, and Paxos reportedly received conditional approvals in December.
The national trust bank charter would enable Bridge to store digital assets for customers, issue stablecoins, and monitor reserve funds backing those digital currencies, according to the company. Stablecoins are digital currencies designed to maintain stable value, typically backed by reserve holdings such as U.S. dollars.
Bridge stated that the federal charter would create “the regulatory backbone” companies need to deploy stablecoins securely and at scale. The charter would allow the platform to serve financial institutions, fintech companies, cryptocurrency firms, and enterprises seeking digital payment options.
Bridge joins several major cryptocurrency companies seeking federal charters from the OCC. Ripple, Circle, BitGo, Fidelity Digital Assets, and Paxos reportedly received conditional approvals in December, according to industry reports. Anchorage Digital Bank remains the only company to have completed the process and secured a national trust bank charter, which it obtained in 2021.
The conditional approval positions Bridge to operate under the Guiding and Establishing National Innovation for U.S. Stablecoins Act, known as the GENIUS Act. The legislation, signed in 2024, establishes a legal framework for stablecoin issuance and oversight in the United States. The law includes provisions for increased transparency, strengthened reserve requirements, and federal regulatory oversight of firms involved in stablecoin issuance and custody.
The OCC’s recent conditional approvals indicate federal regulators are increasingly willing to integrate cryptocurrency companies into the regulated financial system. However, the approvals remain conditional as regulators proceed cautiously amid concerns about potential risks cryptocurrency companies could pose to the financial system.
For Stripe, Bridge’s approval could strengthen the payment processor’s position in digital payments. Stablecoins are emerging as alternatives to traditional cross-border payment systems, offering faster transaction speeds and lower costs, according to industry analysts.
Source: https://crypto.news/bridge-receives-conditional-occ-approval-for-national/
