Cryptocurrency exchange Coinbase has applied to the U.S. Office of the Comptroller of the Currency to become a national trust company.
Coinbase is taking a significant step in expanding our business capabilities and strengthening regulatory oversight beyond the existing system, paving the way for innovation and growth in building a modern financial system powered by digital assets, the company said.
According to Coinbase representatives, obtaining a license will be part of the exchange’s strategy to «bridge the gap between the crypto economy and the traditional financial system.» However, the company is not interested in changing its core business.
Coinbase has no intention of becoming a bank. We firmly believe that clear rules and the trust of our regulators and customers allow Coinbase to confidently innovate while maintaining proper oversight and security, Coinbase stated.
Luke Youngblood, a former exchange employee who led the creation of the rewards system for staking Coinbase explained that the license would allow Coinbase to «offer a virtually built-in deposit and withdrawal system, eliminating the need to use partner banks for deposits and withdrawals.»