Stripe's Bridge Seeks OCC Approval for National Bank Trust Charter to Fuel Stablecoin Growth

Stripe's Bridge Applies for National Bank Trust Charter to Expand Stablecoin Business In a move that could significantly expand its stablecoin business, Stripe's subsidiary, Bridge, has applied for a national bank trust charter with the U.S. Office of the Comptroller of the Currency (OCC). The charter would bring Bridge under federal oversight, allowing it to provide regulated stablecoin services and "tokenize trillions of dollars," according to co-founder Zach Abrams. The application, submitted on October 1, marks a significant step for Bridge, which was acquired by Stripe in 2023. If granted, the charter would enable Bridge to operate as a national bank trust, providing a secure and regulated environment for stablecoin issuance and trading. "We believe that this charter will allow us to provide a more seamless experience for our customers," Abrams said in an interview. "With this charter, we can tokenize trillions of dollars, which is a huge opportunity for the industry." Bridge's application comes at a time when the demand for stablecoins is on the rise. Stablecoins are digital assets pegged to the value of a fiat currency, such as the US dollar, and are used for trading, lending, and other financial activities. The OCC has been reviewing Bridge's application, which includes detailed plans for its operations and risk management practices. If approved, Bridge would become one of the first non-bank entities to be granted a national bank trust charter. Background on Bridge Bridge was founded in 2020 by Abrams and Sean Yu, with the goal of providing a secure and regulated platform for stablecoin issuance and trading. In 2023, Stripe acquired Bridge as part of its expansion into the digital assets space. Market analysts say that the approval of Bridge's application could have significant implications for the stablecoin market. "This is a major development for the industry," said David Gerard, a financial analyst at Bloomberg Intelligence. "If approved, it would provide a clear regulatory framework for stablecoin issuers and traders." Gerard noted that the OCC's review process is rigorous and thorough, and that Bridge's application will likely face intense scrutiny before approval. The outcome of Bridge's application is expected to be announced in the coming months. If approved, it could pave the way for other non-bank entities to apply for national bank trust charters, further expanding the stablecoin market. Current Status Bridge's application is currently under review by the OCC. The regulatory agency has not provided a timeline for its decision. Next Developments The outcome of Bridge's application will be closely watched by industry stakeholders and regulators. If approved, it could lead to increased adoption of stablecoins in financial markets and further expansion of the digital assets space. In an interview, Abrams said that Bridge is committed to providing a secure and regulated platform for stablecoin issuance and trading. "We believe that this charter will allow us to provide a more seamless experience for our customers," he said. "We're excited about the opportunity to bring stability and security to the industry." *Reporting by Coindesk.*