Why Every Company Suddenly Wants To Become a Bank

Cryptocurrency companies and fintech startups are applying to open banks in the United States. Ripple, Coinbase and the UK payments company Wise have submitted applications for national trust charters this year. Trust banks cannot take deposits or make loans but charge fees for safekeeping customer assets and are not FDIC insured. The applications have reached 12 so far this year, more than any of the preceding eight years, according to data compiled by Klaros Group.

Comptroller of the Currency Jonathan Gould said last month that cryptocurrency activity should be done within the banking system if legally permissible and safe. His agency regulates nationally-chartered U.S. banks. The Bank Policy Institute and the Independent Community Bankers of America oppose the applications. BPI sent letters urging the Office of the Comptroller of the Currency to reject the Ripple, Wise, and Sony applications. The group said approving Coinbase could significantly increase risks to the U.S. financial system.

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