According to a recent public letter issued by the U.S. Office of the Comptroller of the Currency (OCC), both banks and other federally regulated financial institutions can now offer cryptocurrency custody services to the public without requiring special authorization. This development provides significant momentum for cryptocurrencies entering mainstream markets.
Federally Regulated Institutions Can Offer Cryptocurrency Custody Services
The OCC, a bureau of the U.S. Department of the Treasury, published a public letter yesterday clarifying that national banks and federal savings associations have the legal right to provide cryptocurrency custody services to clients. The letter emphasized that offering such services—including safeguarding private keys—falls within the modernization of traditional banking custody operations. OCC Acting Comptroller Brian P. Brooks stated:
"From safe deposit boxes to virtual vaults, we must ensure banks can meet today’s evolving financial needs. This decision affirms banks’ authority to safeguard valuable assets—including cryptocurrencies—for millions of Americans."
Previously, only specially licensed entities could provide cryptocurrency custody services. With this announcement, any federally regulated institution already offering traditional asset custody may now extend its services to cryptocurrencies.
Cryptocurrency’s Path Toward Mainstream Adoption
The letter also reaffirmed the OCC’s stance that national banks may provide banking services to any lawful business—including cryptocurrency-related operations—as long as risks are effectively managed and applicable laws are followed.
Most crypto businesses and exchanges heavily rely on banking services to facilitate fiat gateways, allowing customers to fund accounts with traditional currency for crypto purchases. However, due to cryptocurrencies’ speculative nature and perceived money-laundering risks, service providers like exchanges have historically struggled to secure banking partnerships. A landmark shift occurred earlier this year when financial giant JPMorgan announced banking services for crypto exchanges Gemini and Coinbase.
For cryptocurrency investors, these developments—both the expanded banking access for service providers and regulatory approval for custody services—are significant bullish signals. They mark pivotal milestones in crypto’s journey toward mainstream adoption.
In an interview with Chain News, Aegis Custody CEO Wei Qiaojie commented:
"Following Germany’s move to allow banks to custody digital assets, U.S. banks are now joining the ecosystem. This integration blurs the line between traditional and digital currencies, signaling a future where more physical assets become digitized. The next frontier will focus on securely storing digital assets, with blockchain multisignature encryption playing a critical role in merging security and business processes—spanning hardware/software integration, operational workflows, and cybersecurity controls."
FAQs
Q: What does the OCC’s announcement mean for banks?
A: Federally regulated banks and savings associations can now offer cryptocurrency custody (e.g., private key management) without additional approvals, treating it as an extension of existing custody services.
Q: How does this impact cryptocurrency adoption?
A: By legitimizing crypto custody through trusted financial institutions, the ruling reduces barriers to entry, encouraging broader institutional and public participation.
Q: Which cryptocurrencies are covered under these services?
A: While the OCC’s letter doesn’t specify, it applies to legally recognized cryptocurrencies deemed valuable assets by clients.
Q: Are there risks for banks offering crypto custody?
A: Yes—banks must implement robust risk management, including cybersecurity measures and compliance with anti-money laundering (AML) laws.
Q: Can state-chartered banks provide these services?
A: The OCC’s directive applies to national banks and federal associations; state banks may need separate approvals depending on local regulations.
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Risk Disclosure
Cryptocurrency investments carry high volatility and risk, potentially resulting in total loss of capital. Assess risks carefully before participating.
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