The Office of the Comptroller of the Currency (OCC) has finalized a rule broadening national trust bank activities beyond fiduciary roles, enabling fintech and cryptocurrency firms to offer custody services without full banking licenses. This follows December 2025 charter approvals and recent closure of the comment period, despite strong opposition from state regulators.
On February 27, 2026, the OCC released its final rule under 12 CFR 5.20, expanding permissible activities for national trust banks from 'fiduciary activities' to 'operations of a trust company and activities related thereto.' This explicitly permits nonfiduciary custody operations, providing crypto firms like those approved in December 2025 (subsidiaries of Ripple, Circle, Paxos, BitGo, and Fidelity) and fintechs an alternative to full banking charters for accessing regulated infrastructure.
The finalization caps a process that included conditional charter approvals last year and closure of the NPRM comment period earlier this month, as previously covered. It positions trust charters—custodying nearly $2 trillion in assets without core banking functions—as a flexible option for digital asset players amid evolving regulations.
State regulators, including the Conference of State Bank Supervisors (CSBS), have sharply criticized the move, arguing it erodes their authority and creates 'Franken-charters' that bypass traditional oversight like the Bank Holding Company Act. Banking groups such as the American Bankers Association have echoed concerns over regulatory arbitrage and public confusion.
Issued on a Friday, the rule highlights ongoing federal efforts to integrate innovative financial services, though implementation details and future approvals remain forthcoming.
