Check the latest news about Bastion receiving conditional OCC approval for a National Trust Bank charter.
Frequently Asked Questions
Here is a list of FAQs regarding Bastion Receives Conditional OCC Approval for a National Trust Bank Charter
General Beginner Questions
What does Conditional OCC Approval mean
It means the Office of the Comptroller of the Currency has preliminarily agreed to let Bastion open a bank but Bastion must meet specific requirements first They cant open for business until they check all the boxes
What is the OCC
The OCC is a federal agency that regulates and supervises all national banks in the United States Think of them as the referee for big banks
What is a National Trust Bank Charter
It is a specific type of federal banking license It allows a company to operate as a bank nationwide but with a focus on fiduciary duties rather than taking deposits and making loans like a standard commercial bank
Why is this a big deal for Bastion
Receiving this approval moves Bastion from being a crypto company to being a regulated financial institution It adds a massive layer of legitimacy and allows them to operate under federal law rather than a patchwork of state laws
Is Bastion a regular bank now
Not exactly While they will have a bank charter they are a trust bank You likely wont see a Bastion branch on the corner Instead they provide banking infrastructure and custody services behind the scenes for other businesses
Intermediate Questions
What are the conditions they have to meet
While the specific conditions arent always public they usually involve
Raising a certain amount of capital
Hiring specific compliance officers
Implementing strict antimoney laundering systems
Finalizing their technology infrastructure
How does this help Bastions customers
It provides regulatory clarity Customers can trust that Bastion is being watched by federal regulators It also makes it easier for Bastion to partner with traditional banks and financial institutions
Does this mean Bastion is FDIC insured
No Trust banks generally do not hold deposits in the same way a commercial bank does so they typically do not carry FDIC insurance Instead they hold assets in a custodial capacity
What is the difference between a Trust Charter and a Full Service Bank Charter
A full