OCC Conditionally Approves Augustus, an AI-Native Stablecoin Bank

The Office of the Comptroller of the Currency on May 11 granted conditional approval to Augustus Bank N.A., making it the first U.S. clearing bank designed around stablecoin and artificial intelligence infrastructure, subject to final national charter approval.

The New York-based firm, formerly known as Ivy, plans to offer always-on programmable settlement services for major Western currencies to global financial institutions. Augustus aims to serve use cases the legacy correspondent clearing system does not support.

Augustus reported 10x year-over-year growth in 2024, processed billions in transaction volume and lists the digital asset exchange Kraken among its clients.

The company built its core banking system for machine-initiated, agent-driven workflows rather than the short-lived, human-initiated requests handled by traditional cores. Augustus has highlighted that the legacy clearing model closes about 115 days a year and runs on a two-day settlement cycle.

U.S. dollar clearing would require a full national bank charter. The OCC’s conditional approval clears an initial regulatory hurdle, but the charter remains under review and must meet the agency’s requirements before Augustus can offer dollar clearing or access Federal Reserve services.

If the charter receives final approval, co-founder Ferdinand Dabitz, 25 and a Thiel Fellow, would become the youngest CEO of a federally chartered U.S. bank in at least 140 years. Greg Quarles, who spent 18 years at the OCC and later led several banks, will serve as president. The executive team includes Joe Schenone as chief financial officer, Andy Riggs as chief credit officer, Kyle Steed as chief risk officer and Bruce Wallace on the board; their resumes include roles at large banks and regulated fintech firms.

Augustus’s European subsidiaries are regulated and already processing euro clearing. The company has said U.S. dollar clearing cannot commence until the national charter is finalized.

The approval comes while Congress considers the GENIUS Act to allow federally chartered banks to interact directly with stablecoins and while the Senate Banking Committee prepares a vote on the CLARITY Act. The Independent Community Bankers of America has requested a pause on a separate national trust charter filed by Kraken’s parent company, citing potential interconnected risks to financial stability, and the American Bankers Association has urged bank leaders to engage with senators before the CLARITY vote.

Augustus has pointed to growing competitive pressure on Western currency infrastructure. China’s Cross-Border Interbank Payment System connects roughly 4,800 banks, and BRICS Pay is scheduled to launch in 2026 with the objective of routing some cross-border payments outside SWIFT and the U.S. dollar system.

Since 2010, fewer than ten full-service national bank charters have been granted in the United States. The OCC’s conditional approval advances Augustus’s application, but it does not end regulatory review or the broader policy debate over stablecoins and federally chartered banks.