Coinbase to Secure Trust Charter, Rejects Traditional Bank Role

In a public statement released on October 3, the company noted that this decision aims to broaden its business under federal regulation.

While seeking new ways to operate within a regulated framework, Coinbase stated that it does not plan to become a traditional bank.

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Rather than entering the banking industry, Coinbase explained that its goal is to create better links between digital assets and standard financial systems. It emphasized the importance of maintaining clear rules and strong oversight while continuing to offer secure services to customers.

Coinbase noted that this approach supports innovation without compromising regulatory standards.

Coinbase also mentioned that the charter could open up new opportunities beyond holding assets for clients. This would include expanding into payment services and related tools, all under a clearer regulatory framework.

Luke Youngblood, a former Coinbase staff member who worked on staking features, stated in a podcast that obtaining the trust charter could enable Coinbase to handle deposits and withdrawals directly, without relying on outside banks for those transactions.

Additionally, Brendan Pedersen, a political commentator, pointed out that trust companies have faced more limits in their operations compared to banks. Still, he acknowledged that these lines have become less defined over time.

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