Circle, Ripple, and three other institutions have received conditional approval for a U.S. trust banking license, further advancing the integration of cryptocurrency and traditional finance.

BlockBeats News, December 13th, the Office of the Comptroller of the Currency (OCC) has conditionally approved trust bank charters for five institutions: Ripple, BitGo, Digital Assets, Paxos, and Circle.

“Conditional approval” is a preliminary form of recognition, indicating that the OCC has reviewed the applications and believes the companies largely meet regulatory requirements (such as capital adequacy, risk management framework, and business plan) but do not yet have final approval. The companies must meet specific conditions within a set timeframe to convert to full operational status.

Once all conditions are met, the OCC will issue a final, unconditional national trust bank charter, allowing the companies to immediately exercise trust bank powers. These powers primarily include expanding core businesses to act as trustees managing client assets, processing payment settlements, custody of digital assets (such as stablecoin reserves), and providing related financial services. However, a trust bank charter is different from a full-service bank charter in that it cannot accept deposits or make loans. Companies can apply for a Federal Reserve master account, expedite clearing, access the traditional financial system, and further drive the integration of crypto and traditional finance.