Blab Crypto
BitGo Secures OCC National Trust Bank Charter Amid Regulatory Debate on Crypto Custody
In December 2025, the Office of the Comptroller of the Currency (OCC) handed five cryptocurrency firms—BitGo Holdings, Inc. included—national trust bank charters, bringing digital‑asset custody under federal oversight. The decision marked a turning point for BitGo, shifting from a software‑centric provider to a fully regulated financial institution.
The company’s roots trace back to 2013, when its founders noticed that exchanges such as Coinbase and Kraken were still unaccompanied by banks willing to hold Bitcoin. BitGo answered with a multi‑signature wallet that required two of three keys to authorize a transaction. The technology evolved into multi‑party computation (MPC) and quickly became the industry standard for institutional custody.
Institutional demand accelerated BitGo’s growth. CME Group and other large holders sought a trusted custodian for their Bitcoin positions, prompting BitGo to convert from a software vendor to a trust company in 2015‑2016. The South Dakota state charter allowed the firm to hold client keys under fiduciary oversight, and it soon expanded its custody network to licensed entities in the United States, Switzerland, Germany, Dubai, Singapore, and South Korea.
In 2025, BitGo applied to the OCC to elevate its trust company to a national trust bank. The OCC approved, and BitGo Bank & Trust, National Association (N.A.) now operates under a single federal supervisory regime. The charter enables BitGo to offer digital‑asset services while meeting the OCC’s rigorous prudential, anti‑money‑laundering, and consumer‑protection standards.
The approval has sparked debate. Senator Elizabeth Warren has warned that the new charters could allow crypto firms to sidestep traditional banking safeguards. She argues that these companies’ business plans extend beyond fiduciary trust activities to include non‑fiduciary custodial services, payment facilitation, and stablecoin issuance. In a recent interview, BitGo CEO Mike Belshe clarified that the firm’s core function remains fiduciary custody, not deposit taking or lending.
Belshe explained that a national trust bank differs from a depository bank. Depository banks hold client funds on their balance sheet and lend them out, exposing them to counter‑party and duration risk. In contrast, BitGo’s custody model keeps client assets segregated, fully backed, and available for withdrawal at any time. The company can return all client assets within 24 hours—a guarantee that depository banks cannot match.
The discussion also touched on FDIC insurance. Belshe noted that FDIC coverage applies to deposits in member banks, not to assets held by non‑bank fintech firms. Because BitGo does not take deposits or lend client funds, FDIC insurance is not relevant to its operations. Instead, the firm relies on its custody infrastructure—multi‑sig and MPC technology—and rigorous audit procedures to protect client assets.
Beyond custody, BitGo has expanded into staking, mining, and stablecoin issuance. The company argues that stablecoins backed 1:1 by U.S. Treasury bills offer a risk‑free payment alternative capable of competing with traditional banking systems. Belshe highlighted that such stablecoins can provide instant, low‑cost cross‑border transfers, a feature that legacy payment networks struggle to match.
As of early 2026, BitGo manages more than $100 billion in digital assets and serves over 5,500 institutional clients worldwide. Its public listing and OCC charter aim to deliver transparency and regulatory confidence to its clientele.
The broader crypto industry watches the OCC’s decisions closely. The charter is expected to shape how other digital‑asset firms structure their custody and banking operations. While the regulatory landscape remains unsettled, BitGo’s transition to a federally chartered national trust bank represents a significant milestone in the maturation of crypto infrastructure.
In summary, BitGo’s OCC charter confirms the company’s role as a fiduciary custodian rather than a deposit‑taking bank. The firm’s multi‑sig and MPC technology, combined with its compliance with OCC standards, positions it to serve institutional investors seeking secure digital‑asset custody. The debate over FDIC coverage and the scope of crypto banking continues, but BitGo’s regulatory status provides a clearer framework for its operations and client expectations.
The company’s roots trace back to 2013, when its founders noticed that exchanges such as Coinbase and Kraken were still unaccompanied by banks willing to hold Bitcoin. BitGo answered with a multi‑signature wallet that required two of three keys to authorize a transaction. The technology evolved into multi‑party computation (MPC) and quickly became the industry standard for institutional custody.
Institutional demand accelerated BitGo’s growth. CME Group and other large holders sought a trusted custodian for their Bitcoin positions, prompting BitGo to convert from a software vendor to a trust company in 2015‑2016. The South Dakota state charter allowed the firm to hold client keys under fiduciary oversight, and it soon expanded its custody network to licensed entities in the United States, Switzerland, Germany, Dubai, Singapore, and South Korea.
In 2025, BitGo applied to the OCC to elevate its trust company to a national trust bank. The OCC approved, and BitGo Bank & Trust, National Association (N.A.) now operates under a single federal supervisory regime. The charter enables BitGo to offer digital‑asset services while meeting the OCC’s rigorous prudential, anti‑money‑laundering, and consumer‑protection standards.
The approval has sparked debate. Senator Elizabeth Warren has warned that the new charters could allow crypto firms to sidestep traditional banking safeguards. She argues that these companies’ business plans extend beyond fiduciary trust activities to include non‑fiduciary custodial services, payment facilitation, and stablecoin issuance. In a recent interview, BitGo CEO Mike Belshe clarified that the firm’s core function remains fiduciary custody, not deposit taking or lending.
Belshe explained that a national trust bank differs from a depository bank. Depository banks hold client funds on their balance sheet and lend them out, exposing them to counter‑party and duration risk. In contrast, BitGo’s custody model keeps client assets segregated, fully backed, and available for withdrawal at any time. The company can return all client assets within 24 hours—a guarantee that depository banks cannot match.
The discussion also touched on FDIC insurance. Belshe noted that FDIC coverage applies to deposits in member banks, not to assets held by non‑bank fintech firms. Because BitGo does not take deposits or lend client funds, FDIC insurance is not relevant to its operations. Instead, the firm relies on its custody infrastructure—multi‑sig and MPC technology—and rigorous audit procedures to protect client assets.
Beyond custody, BitGo has expanded into staking, mining, and stablecoin issuance. The company argues that stablecoins backed 1:1 by U.S. Treasury bills offer a risk‑free payment alternative capable of competing with traditional banking systems. Belshe highlighted that such stablecoins can provide instant, low‑cost cross‑border transfers, a feature that legacy payment networks struggle to match.
As of early 2026, BitGo manages more than $100 billion in digital assets and serves over 5,500 institutional clients worldwide. Its public listing and OCC charter aim to deliver transparency and regulatory confidence to its clientele.
The broader crypto industry watches the OCC’s decisions closely. The charter is expected to shape how other digital‑asset firms structure their custody and banking operations. While the regulatory landscape remains unsettled, BitGo’s transition to a federally chartered national trust bank represents a significant milestone in the maturation of crypto infrastructure.
In summary, BitGo’s OCC charter confirms the company’s role as a fiduciary custodian rather than a deposit‑taking bank. The firm’s multi‑sig and MPC technology, combined with its compliance with OCC standards, positions it to serve institutional investors seeking secure digital‑asset custody. The debate over FDIC coverage and the scope of crypto banking continues, but BitGo’s regulatory status provides a clearer framework for its operations and client expectations.
