OCC Clears Path for Banks to Facilitate No-Risk Crypto Transactions
The Office of the Comptroller of the Currency (OCC) has granted U.S. national banks the authority to act as intermediaries in cryptocurrency transactions without holding digital assets on their balance sheets. This regulatory shift eliminates market exposure for banks while providing a secure framework for client trades.
Banks can now facilitate simultaneous buy-sell executions, effectively creating a custodial bridge between counterparties. The OCC's Interpretive Letter 1188 formalizes earlier guidance permitting banks to engage with digital assets, emphasizing robust risk management protocols around cybersecurity and compliance.
This decision accelerates institutional adoption by addressing settlement risks that previously deterred bank participation. Market infrastructure for cryptocurrencies continues evolving toward traditional finance standards, with regulated entities playing increasingly central roles in liquidity provision.
