Modern Treasury Applies to Set Up US National Trust Bank for Stablecoin Custody
Summary
- Modern Treasury said it is seeking to establish a U.S. national trust bank to provide digital asset custody for stablecoins and other assets, as well as fiat-currency services.
- If approved, the bank would operate as a federally regulated limited-purpose national trust bank, and customers would be able to custody and transfer stablecoins and fiat currency through a single integrated service.
- In the U.S., crypto and payments companies are increasingly pursuing national trust bank charters, with Bastion, Ripple, Circle, BitGo, Kraken parent Payward, Zero Hash and Block applying for or receiving related approvals.
Forecast Trend Report by Period
Payments infrastructure firm Modern Treasury is seeking to establish a U.S. national trust bank to provide custody for stablecoins and other digital assets, along with fiat-currency services.
Cointelegraph reported on Oct. 5 that Modern Treasury submitted an application to the Office of the Comptroller of the Currency to establish Modern Treasury National Trust Bank.
If approved, the bank would operate as a federally regulated limited-purpose national trust bank. Modern Treasury customers would be able to custody and transfer stablecoins and fiat currency through a single integrated service. The bank does not plan to issue stablecoins directly or engage in lending.
"We believe stablecoins will become core infrastructure for the future economy," Modern Treasury co-founder and Chief Executive Officer Matt Marcus said. He added that the company has fully integrated stablecoins into its existing payments platform.
The new bank would operate separately from Modern Treasury's existing payments business. The company has processed more than $600 billion in payments for hundreds of institutions to date.
The application comes as a growing number of crypto and payments companies in the U.S. pursue national trust bank charters. Bastion and Ripple have received conditional approval from the OCC, while Circle and BitGo have secured final approval. Kraken parent Payward, Zero Hash and Block have also applied for related charters.
