Stripe-Owned Bridge Gets Green Light for National Trust Bank Charter

TLDR

• Bridge gets OCC approval to issue stablecoins under federal oversight.
• Stripe-backed Bridge earns national trust bank status for stablecoin growth.
• Bridge secures OCC approval, boosting stablecoin integration into payments.
• Stripe-backed Bridge to issue stablecoins under new national trust bank status.
• Bridge gains OCC nod to expand stablecoin services across the U.S.

Bridge, a stablecoin platform acquired by payments giant Stripe, has received conditional approval from the United States Office of the Comptroller of the Currency (OCC) to form a national trust bank. The approval enables Bridge to issue stablecoins, manage reserves, and offer custodial services under federal oversight. This development is part of Stripe’s broader push to integrate blockchain-based payments into its global system, enhancing its financial infrastructure.

The conditional banking charter positions Bridge as a significant player in the stablecoin space, offering clarity and compliance for businesses in the digital dollar ecosystem. This approval marks a new milestone for Bridge, which already supports the issuance of stablecoins like Phantom’s CASH and MetaMask’s mUSD through Stripe’s Open Issuance platform. The company’s compliance with the GENIUS Act allows it to offer secure and scalable solutions for enterprises, fintechs, and crypto businesses.

Bridge’s Strategic Move in the Stablecoin Market

Bridge, founded by former Coinbase executives Zach Abrams and Sean Yu, has focused on providing businesses with a seamless way to move between traditional fiat systems and blockchain networks. The company’s stablecoin orchestration and financial infrastructure services aim to simplify the adoption of blockchain technology. With the recent approval, Bridge can now expand its services across the U.S. without needing separate state-level money transmitter licenses.

This approval further strengthens Bridge’s position as a leader in the rapidly growing stablecoin industry. It also reflects a broader trend of crypto companies gaining regulatory clarity, with firms like Ripple, Circleand Paxos having received similar conditional approvals. Bridge’s unique offering lies in its integration with Stripe’s global payments infrastructure, providing its clients with enhanced access to digital dollar services while adhering to the regulatory framework.

The Regulatory Landscape and Concerns Over Speed

Despite the potential benefits, the approval of national trust bank charters for crypto firms has raised concerns within the banking sector. The American Bankers Association (ABA) has urged the OCC to ensure that the GENIUS Act’s provisions are clearly understood and implemented. The ABA’s concerns revolve around whether crypto firms could use these charters to bypass necessary oversight.

While Bridge’s conditional approval has been hailed as a step forward, critics warn that the OCC needs to be cautious in granting charters to crypto companies. These firms are growing rapidly, but many regulations required by the GENIUS Act are still being developed. The continued involvement of the OCC, Federal Reserve, and Federal Deposit Insurance Corporation in the process will be crucial in determining the future regulatory landscape for stablecoins.

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