Zerohash Aims for National Trust Bank Charter in the U.S.
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Digital asset infrastructure company Zerohash has taken a significant step by applying for a national trust bank charter through the Office of the Comptroller of the Currency (OCC). This move is poised to enhance its capabilities in digital asset custody and settlement services.
Based in Chicago, Zerohash is known for offering crypto infrastructure solutions tailored for banks, brokerages, and financial technology platforms. Among its clientele are notable entities such as the prediction markets platform Kalshi and the asset management giant BlackRock.
A recent report indicated that the proposed trust bank would not only handle custody of digital assets but would also manage fiat currencies and a variety of other assets. In addition, it would provide services such as custodial staking, transfer agent functions, and stablecoin management.
Stephen Gardner, the chief legal officer at Zerohash, has been named as the candidate for the chief executive officer role should the trust bank be established.
This charter application positions Zerohash alongside a growing number of cryptocurrency and fintech firms pursuing federal trust charters during the current administration. In December, the OCC granted conditional trust charters to several companies, including Circle Internet Group, Ripple, BitGo, Fidelity Digital Assets, and Paxos.
It is worth noting that trust banks have a distinct operational framework compared to traditional banks. They are prohibited from taking deposits or issuing loans, but they are authorized to hold assets in custody.
Earlier in the year, there were discussions regarding a potential acquisition of Zerohash by Mastercard for approximately $2 billion. However, Zerohash opted to remain an independent entity, declining the acquisition offer. Currently, the two companies are exploring the possibility of a strategic investment, which would allow Mastercard to benefit from Zerohash’s technology and client relations while maintaining the latter’s independence.
This development represents a noteworthy trend within the cryptocurrency sector, as firms continue to navigate regulatory landscapes to broaden their services and client offerings. With Zerohash’s intent to secure a national trust bank charter, the firm aims to further solidify its position in the evolving digital finance ecosystem.
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Gregory Russell
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