20+ Crypto Firms Seek OCC Charters to Attract Institutional Capital

More than 20 cryptocurrency companies, among them Ripple and Coinbase, are applying for federal charters from the Office of the Comptroller of the Currency in 2026. Firms pursuing the charters say the status will provide a single federal regulator and clearer legal footing for large institutional counterparties.

Applicants and industry observers say the effort is driven by changes in how banks enforce rules and the conditions banks set for working with crypto firms. Spencer Bogart, a general partner at Blockchain Capital, noted that many fintech and crypto companies once aimed to be “bank-like” without becoming banks because of heavier regulation and lower market valuations. He said those companies are now seeking federal oversight to meet the compliance standards of major banks and large investors.

Industry participants point to the breakdown of the sponsor bank model, under which nonbank crypto firms relied on third-party banks for services. When several banks cut ties with crypto-related customers, some firms faced reduced access to payment networks and correspondent services. Charter applicants say a federal charter can help restore steady access to large banks and institutional investors that require clear regulatory oversight.

The OCC charters sought by these firms do not generally permit deposit-taking or a full slate of commercial banking activities such as traditional lending. Applicants describe the charters as providing a single federal license, one regulator and greater credibility when negotiating with pension funds, sovereign wealth funds and major commercial banks that follow strict counterparty rules.

Companies pursuing charters argue the single-regulator model simplifies compliance compared with multiple state licenses and a patchwork of banking relationships. For institutional investors and custodians, a federally chartered counterparty establishes a clearer line of regulatory responsibility that can shorten due diligence and satisfy internal risk teams.

Bogart said many firms had avoided full bank status because of compliance burdens and market effects, but a growing number of companies now view a federal charter as a way to meet institutional counterparties’ requirements. He added that a federally chartered and supervised institution tends to clear institutional filters more cleanly than a state-licensed model.

Applications are expected to continue through 2026 as firms formalize business plans that depend on large counterparties and clearer federal oversight.