Coinbase has received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish the Coinbase National Trust Company. This move transitions Coinbase's institutional custody business from state-level regulation to federal oversight, allowing it to provide asset custody, trust management, and investment settlement services across the U.S. However, it will not operate as a commercial bank, as it cannot accept retail deposits or engage in fractional reserve banking. The approval marks a significant step in the evolution of cryptocurrency finance, reflecting the industry's shift towards full regulatory compliance. Coinbase's assets under custody reached $376 billion by the end of 2025, representing 13% of the global cryptocurrency market cap. This concentration of assets has prompted federal regulators to bring Coinbase under national oversight, addressing systemic risks associated with crypto assets. The conditional approval requires Coinbase to pass rigorous OCC examinations before fully launching its trust operations. This development is expected to lower barriers for traditional financial institutions to enter the crypto market, as Coinbase will adhere to federal standards for auditing and compliance, enhancing its appeal as a custodian for institutional investors.