Ripple and Circle gained preliminary approval from a leading U.S. financial regulator to establish national trust banks on Friday, a dramatic move that could further incorporate digital assets into the banking system.

The Office of the Comptroller of the Currency conditionally approved Circle and Ripple’s two new national trust bank charters and BitGo, Paxos, and Fidelity Digital Assets’ applications to convert state trust bank charters to national charters to operate nationwide.

Each trust bank must receive final permission from the regulator before operating.

If finalized, national trust bank charters will empower corporations to handle and keep consumer assets and process payments faster. Companies cannot accept cash deposits or offer loans under the license.

The Bank Policy Institute said conditional approvals “leaves substantial unanswered questions” about whether corporations’ criteria will be suited to their risks.
After soliciting cryptocurrency donations during the campaign, President Donald Trump has sought to alter U.S. cryptocurrency rules.