Stripe’s Bridge wins OCC nod amid crypto bank charter pushback

Stablecoin platform Bridge, which was acquired by Stripe last year, has received conditional approval from the Office of the Comptroller of the Currency (OCC) to become a federally chartered national trust bank. 

A national trust bank charter would enable Bridge to become a major participant in the stablecoin ecosystem. Stablecoins are digital currencies designed to maintain stable value, often backed by reserve holdings such as U.S. dollars. With federal permission, Bridge would be able to safely store digital assets for its customers, issue its own stablecoins, and monitor the funds that hold those stablecoins. 

The approval would bolster Bridge’s ability to cater to businesses that seek to employ digital dollars, Bridge said. These are financial institutions, fintech companies, crypto firms, and enterprises seeking faster, easier payment options. If Bridge operated under a federal umbrella, these customers would be more confident that it would adhere closely to regulations and compliance standards. 

Bridge said that becoming a nationally chartered trust bank would create “the regulatory backbone” companies need to deploy stablecoins securely and at scale. The same federal oversight could ease the process for traditional financial institutions to partner with Bridge, too, as many banks prefer to work with regulated institutions. 

Crypto firms accelerate push for federal charters as regulators open doors

Bridge isn’t the only company applying for federal approval. Other large crypto firms are also seeking charters from the OCC, including Ripple, Circle, BitGo, Fidelity Digital Assets, and Paxos. 

All of these companies reportedly received conditional approvals in December, showing federal regulators are willing to recognize crypto companies in the broader context of banking. Only Anchorage Digital Bank has gone through the process and secured a national trust bank charter, which it did in 2021. 

The Anchorage decision was a milestone at the time — though progress has been mixed since then due to regulatory conservatism and worries regarding crypto risks. 

But momentum has started to pick up again. The new approvals suggest regulators prefer to push crypto companies into the regulated financial system rather than exclude them.

New stablecoin law gives crypto firms a clearer path to regulation

Bridge said its compliance systems are designed to comply with the Guiding and Establishing National Innovation for U.S. Stablecoins Act, also known as the GENIUS Act. Signed last year, this law establishes the legal framework for issuing stablecoins and overseeing them in the U.S. The law includes measures that will increase transparency, toughen reserve requirements, and ensure safe and reliable assets for stablecoins. 

It also provides federal regulators with a clearer scope to oversee firms involved in stablecoin issuance and custody. Bridge’s conditional endorsement puts it in a position to make use of this new regulatory framework. 

Bridge could provide stablecoin services in compliance with national banking standards by operating as a federally chartered trust bank. The move is part of a broader trend among crypto companies to legitimize themselves through regulation. 

Instead of playing in an uncertain legal environment, many corporations’ current mindset is that federal charters provide a means to build trust, especially to lure institutional clients. Now, the crypto banking has been met with some skepticism. 

Those who object are concerned that cryptocurrency companies could operate as banks, adding new risks to the financial system if allowed to do so. Regulators are therefore moving very slowly, with conditional approvals, while being careful to adopt a very specific approach. 

Bridge’s progress could help strengthen Stripe’s position in digital payments. Stablecoins are also becoming a more rapid and cost-effective substitute for traditional cross-border payment systems. If approved, Bridge could help Stripe’s digital dollar infrastructure expand and reach more customers worldwide. 

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