Stripe's Bridge Seeks OCC Approval for National Bank Trust Charter to Fuel Stablecoin Growth
In a move that could significantly expand its stablecoin business, Stripe's subsidiary, Bridge, has submitted an application to the US Office of the Comptroller of the Currency (OCC) for a national bank trust charter. According to CoinDesk, this license would enable Bridge to provide regulated stablecoin services and issue and manage stablecoins under federal oversight.
The application is seen as a strategic step by Stripe to increase its presence in the digital payments space and capitalize on the increasing demand for cross-border transactions facilitated by stablecoins. The $300 billion stablecoin market has been growing rapidly, with more companies looking to tap into this lucrative opportunity. Bridge's move is expected to further solidify its position in the market.
According to a report by CoinDesk, if granted, the national bank trust charter would help Bridge "tokenize trillions of dollars" and expand its business. The license would also enable Bridge to provide regulated stablecoin services, which could lead to increased adoption and usage of stablecoins in various industries.
The OCC has been reviewing applications for national bank charters since 2020, with several companies already receiving approval. However, the review process is typically lengthy and involves a thorough examination of the applicant's financials, business plan, and compliance with regulatory requirements.
Experts believe that Bridge's application could set a precedent for other stablecoin infrastructure firms seeking to obtain a national bank trust charter. "This move by Stripe's Bridge is significant as it demonstrates the company's commitment to expanding its stablecoin business," said Sarah Jones, a financial analyst at AdFinance. "With the increasing demand for cross-border transactions and the growth of the stablecoin market, we expect more companies to follow suit."
The OCC has not yet commented on the status of Bridge's application or provided a timeline for when a decision is expected. However, if approved, the national bank trust charter would be a major milestone for Bridge and Stripe, solidifying their position in the rapidly growing digital payments space.
In related news, Stripe has been expanding its stablecoin business through various partnerships and acquisitions. In 2022, the company announced a partnership with the US-based fintech firm, Plaid, to develop a stablecoin infrastructure platform.
The outcome of Bridge's application is closely watched by industry experts and investors, who are eager to see how this move will impact the stablecoin market and the digital payments space as a whole.
This story was compiled from reports by CoinDesk and CoinDesk.
