The Bank Policy Institute (BPI) has called on the Office of the Comptroller of the Currency (OCC) to reject five applications for limited-purpose national trust company charters from digital asset firms Ripple, Circle, Paxos, National Digital Trust Company, and payments firm Wise.
BPI expressed concern that nonbank financial companies are increasingly seeking these charters without plans to operate as genuine trust companies. The organization warned that allowing such firms a less stringent regulatory environment while offering products similar to those provided by banks could undermine established definitions of what constitutes a bank, increase systemic risk, and weaken confidence in the national banking charter.
“BPI supports efforts to bring innovative new products and services into the regulated ecosystem and agrees that digital assets have a role to play in the U.S. financial system, provided that they are subject to the same rules and responsibilities as every other chartered institution engaging in the same activities,” stated Paige Pidano Paridon, BPI Executive Vice President and Co-Head of Regulatory Affairs. “Companies should not receive trust charters unless they plan to operate as genuine trust companies. If they want to engage in traditional banking activities, they should seek full-service banking charters. Rigorous, uniform standards strengthen America’s global competitiveness and offer customers the confidence and protections that define a well-regulated banking system.”
BPI highlighted that OCC’s authority for issuing trust charters is intended for institutions primarily engaged in trust or fiduciary roles. The group noted that the current applicants intend to perform activities such as managing stablecoin reserves, processing payments, and accepting deposits—services closely related to core banking functions. Despite this overlap with traditional banking operations, these applicants would not be required to obtain deposit insurance or be subject to consolidated supervision or consumer protection measures typically imposed on full-service national banks.
The letters also raised concerns about transparency in how these applications are being reviewed. BPI pointed out that much of the application information has been withheld from public scrutiny due to confidentiality requests by applicants. Freedom of Information Act requests submitted by BPI were denied. The organization is asking OCC officials to make enough information available for meaningful public feedback.
The Bank Policy Institute describes itself as a nonpartisan group representing major U.S., regional, and foreign banks operating in the United States. Its work includes research on regulatory topics and advocating on behalf of industry interests regarding cybersecurity and fraud prevention.