Stablecoin issuers are increasingly seeking legitimacy and regulatory clarity by pursuing federal bank charters in the United States—a trend now joined by Stripe’s stablecoin subsidiary, Bridge. The company has formally submitted an application to the Office of the Comptroller of the Currency (OCC) to establish a national trust bank, further intensifying competition in the race to gain federal oversight and operational flexibility.
Bridge is the stablecoin infrastructure arm of Stripe, a leading financial technology company. With this move, Bridge aims to transition from operating under fragmented state-level money transmitter licenses to a unified federal structure. This shift would enable the company to issue, redeem, and hold stablecoins under a nationally regulated framework. According to co-founder Zack Abrams, this alignment with federal standards—particularly the GENIUS Act—would give Bridge the capacity “to tokenize trillions of dollars” in assets, signifying the massive scale of its ambitions.
The application signals a growing trend among fintech and crypto companies to align themselves with federal regulatory bodies, seeking consistency, scalability, and credibility in their operations. By obtaining a national trust bank charter, Bridge would join a small but expanding group of digital asset firms attempting to operate within the traditional banking system, which includes other notable players like Paxos, Anchorage Digital, and Custodia Bank.
This move comes nearly a year after Stripe acquired Bridge in a $1.1 billion deal, underscoring the strategic importance of stablecoin infrastructure in the company’s broader payment ecosystem. Stripe, which has long positioned itself as a pioneer in digital payments, clearly sees stablecoins and blockchain-based settlement systems as essential components of the next generation of financial services.
If approved, Bridge’s national trust bank would allow it to offer services such as custodianship of digital assets and direct issuance of stablecoins like USDC or its own proprietary tokens. More importantly, this status would give the company access to the U.S. banking system in a way that is compliant with federal regulations, possibly enabling integration with the Federal Reserve payment rails in the future.
The GENIUS Act, mentioned by Abrams, is a legislative initiative that aims to provide regulatory clarity for digital asset firms, particularly those involved in issuing stablecoins. By operating under this framework, Bridge would not only benefit from enhanced legitimacy but also from more efficient and secure cross-border transactions, faster settlement times, and reduced reliance on intermediary banks.
The push for federal charters is also a strategic response to the increasing scrutiny that crypto firms face at the state level. State-by-state licensing can be costly and complex, often resulting in operational inefficiencies and regulatory inconsistencies. A federal charter simplifies this by setting a single standard across all 50 states, making it easier for companies to scale.
Additionally, having a national trust bank charter would allow Bridge to safeguard customer assets with the rigor expected of traditional financial institutions. This includes maintaining capital reserves, implementing robust risk management protocols, and adhering to stringent anti-money laundering (AML) and know-your-customer (KYC) requirements.
The broader stablecoin market stands to benefit from increased participation by federally regulated institutions. As stablecoins aim to serve as a bridge between traditional finance and decentralized ecosystems, regulatory confidence will be key to broader adoption by institutional players and the general public.
This development also reflects a growing convergence between fintech and blockchain technologies. As companies like Stripe, Circle, and PayPal deepen their involvement in digital assets, the financial landscape is evolving toward a hybrid model where traditional payment processors also serve as digital asset custodians and issuers.
Looking ahead, obtaining a federal charter could position Bridge to compete more directly with legacy financial institutions and emerging crypto-native banks. It could also pave the way for broader use of stablecoins in areas such as payroll, remittances, programmable payments, and decentralized finance (DeFi).
Moreover, as the regulatory environment around stablecoins continues to evolve, early compliance and adoption of federal standards could provide Bridge and its parent company Stripe with a first-mover advantage. This could be particularly important as the U.S. government considers issuing a central bank digital currency (CBDC), which would further redefine how digital assets are integrated into the mainstream economy.
In summary, Bridge’s bid for a national trust bank charter marks a significant milestone in the maturation of the stablecoin industry. It reflects a strategic pivot toward regulatory compliance, operational scalability, and institutional trustworthiness—all critical factors as digital currencies become increasingly embedded in the global financial system.