Coinbase's federal trust charter is effective, authorizing OCC-supervised crypto custody and a gradual transfer of client accounts.

Coinbase National Trust Company’s federal custody charter is now effective, moving the exchange’s institutional custody expansion beyond preliminary approval.

The Office of the Comptroller of the Currency’s (OCC) application register records Nov. 6 as the effective date. A final conditional approval letter dated Nov. 6 says the bank met its preopening requirements and authorizes it to open on Nov. 9.

That gives the new entity permission to provide cryptocurrency custody under federal fiduciary supervision. The OCC has also approved an arrangement to transfer accounts from Coinbase’s New York trust company over time.

Coinbase announced final approval on Nov. 9, saying the charter would bring a consistent federal framework to its custody business. The milestone follows the April 2 preliminary decision.

The OCC’s final approval permits cryptocurrency custody in a fiduciary capacity. That subjects the national trust company’s custody services to fiduciary duties and standards of behavior.

The letter also discloses a Sept. 1 agreement between Coinbase Custody Trust Company and the new national bank providing for a gradual transition of custody-service rights and responsibilities from the New York trust company to the national trust company.

The OCC approved the acquisition and assumption of those accounts and assets under an exemption from certain restrictions on transactions between banks and affiliates.

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