Zerohash is looking to secure a United States national trust bank charter as it plans to operate a federally regulated trust bank.
Summary
- Zerohash has applied for a United States national trust bank charter as it seeks to operate a federally regulated trust bank and expand its services under the GENIUS Act framework.
- Applications for national trust bank charters have surged since the GENIUS Act was passed in July.
Securing a National Trust Bank charter from the Office of the Comptroller of the Currency will allow the company to “expand its service offerings under a federal framework, including those activities that fall under the GENIUS Act,” Zerohas said in its official announcement.
Zerohash is a blockchain infrastructure provider that allows financial institutions and fintech firms to integrate crypto services such as trading, custody, and stablecoin payments. The company has been operating since 2017, with some of its clients including big names like Morgan Stanley, Franklin Templeton, and Stripe.
“Applying for a National Trust Bank Charter is a natural next step in offering robust global licensing coverage and continuing to expand our product offering,” the company’s Chief Legal and Compliance Officer, Stephen Gardner, said in a statement.
According to the OCC’s website, Zerohash filed for a national trust bank charter in February alongside two other applicants, Morgan Stanley and PAYO Digital Bank.
Securing this license allows companies to operate federally regulated trust banks and offer services such as custody and asset safekeeping to financial institutions.
Under Donald Trump’s administration, several crypto firms have applied for this charter, including Trump family-backed World Liberty Financial, alongside other companies like Coinbase.
Since the passage of the GENIUS Act in July, this license has become one of the most sought-after regulatory approvals for crypto companies seeking to operate stablecoin and custody services under a federal framework.
As previously covered, the OCC has issued conditional licenses to multiple applicants, including Bridge, Crypto.com, Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos.
However, it has drawn criticism from some lawmakers, most notably Elizabeth Warren, who has recently pushed back against World Liberty’s pending bank charter application and raised questions about disclosure of foreign investors tied to the venture.
Source: https://crypto.news/zerohash-joins-wave-of-crypto-firms-pursuing-us-national-trust-bank-charter/
