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

BlockBeats News, December 13th, the Office of the Comptroller of the Currency (OCC) has just 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 deemed the companies generally compliant with regulatory requirements (such as capital adequacy, risk management framework, and business plan), but it is not a final license. Companies must meet specific conditions within a designated timeframe to convert to fully operational status.

Once all conditions are met, the OCC will issue a final, unconditional national trust bank charter. The companies can immediately exercise trust bank powers, primarily including expanding core businesses, acting as trustees to manage client assets, processing payment settlements, custodying digital assets (such as stablecoin reserves), and providing related financial services. However, a trust bank charter is different from a full-service bank and cannot accept deposits or make loans. They can apply for a Federal Reserve master account to expedite clearing and access the traditional financial system, further promoting the integration of crypto with traditional finance.