Stripe's Stablecoin Arm, Bridge, Secures Key Federal Approval for National Trust Bank Charter

On February 17, 2026, the Office of the Comptroller of the Currency (OCC) granted conditional approval to Bridge — the stablecoin infrastructure platform owned by payments giant Stripe — to form a national trust bank. If finalized, the charter would allow the newly designated Bridge National Trust Bank to issue stablecoins, custody digital assets, and manage reserves under direct federal supervision. The decision marks one of the most consequential regulatory milestones in the brief history of stablecoin finance, and it signals that the boundary between Silicon Valley fintech and federally regulated banking is thinner than ever.

Bridge is the sixth crypto-aligned company to receive this form of conditional approval from the OCC, following a batch of five firms — Circle, Ripple, BitGo, Fidelity Digital Assets, and Paxos — that were greenlit in December 2025. But Bridge's approval carries a dimension the others lack: the full weight of Stripe, a company that processes hundreds of billions of dollars in annual payment volume for millions of businesses worldwide. That combination of federal oversight and global payments scale is what makes this particular approval so significant.

The OCC's Conditional Approval: What It Means in Practice

It is important to understand precisely what the OCC's conditional approval does — and does not — entail. A conditional approval is not a final charter. It is, in regulatory terms, the OCC stating that a company's application has passed initial scrutiny and that the applicant may proceed toward becoming a bank, provided it satisfies a specific set of conditions. These conditions typically include establishing robust anti-money laundering (AML) and Bank Secrecy Act (BSA) compliance programs, maintaining minimum capital and liquidity thresholds, demonstrating sound governance structures, and meeting ongoing reporting requirements.

According to the OCC's announcement, the conditional approval authorizes Bridge to engage in fiduciary activities and related services — specifically, the issuance and management of stablecoins, the custody of digital assets, and the administration of reserves backing those stablecoins. Acting Comptroller Rodney E. Hood has previously stated that blockchain and fintech firms "want to provide 21st century solutions to their clients and customers" and "recognize the strength and vitality that comes from a national bank charter." He has emphasized that the OCC expects firms to maintain "the same strong risk management controls in place to support novel bank activities as they do for traditional ones."

The distinction between conditional and final approval matters greatly. The OCC's history with fintech charters shows that the path from conditional approval to full operation can take months or even years. Companies must demonstrate not just that they have policies on paper but that their systems, personnel, and operational infrastructure meet the agency's standards in practice. For Bridge, this means building out a compliance apparatus that can withstand the same level of scrutiny applied to traditional nationally chartered banks — a substantial undertaking even for a company backed by Stripe's resources.

Inside Bridge: From Startup to Stripe's $1.1 Billion Acquisition

To appreciate the significance of this charter approval, it helps to understand how Bridge arrived at this moment. The company was founded in 2022 by Zach Abrams and Sean Yu, two entrepreneurs with deep roots in the fintech ecosystem. Abrams previously led consumer products at both Coinbase and Brex, while Yu was an early engineer at DoorDash before joining Airbnb. Before all of that, the pair co-founded Evenly, a peer-to-peer payments app that was acquired by Square (now Block) in 2013.

Bridge was built as a low-level infrastructure layer for stablecoins — a set of APIs that enables businesses to move money using stablecoin rails without needing to interact with blockchain technology directly. As Abrams told Fortune in 2024, "We built Bridge as a low-level set of APIs that would enable companies to use a stablecoin rail without thinking about it." The company's pitch was practical, not ideological: "Fintech is deeply rational," Abrams said. "If you can do something that is faster, cheaper, and more economical, you win."

The approach resonated with investors. In August 2024, Bridge raised $58 million from Sequoia Capital, Ribbit Capital, Index Ventures, and Haun Ventures. But the real inflection point came just two months later, when Stripe agreed to acquire Bridge for approximately $1.1 billion — making it the largest acquisition in Stripe's history. The deal, which closed in February 2025, represented a dramatic return to crypto for Stripe. The payments company had been one of the first major fintech firms to support Bitcoin payments back in 2014, only to abandon the effort in 2018, citing scalability problems and high transaction fees. With Bridge, Stripe was betting that stablecoins — not volatile cryptocurrencies — were the blockchain technology that could actually transform global payments.

By 2024, Bridge's business had grown tenfold in a single year. The Stripe acquisition gave it access to a merchant base that spans nearly every corner of the internet economy, from small online shops to enterprise platforms. The OCC charter, if finalized, would add the final piece: the regulatory legitimacy to issue and manage stablecoins as a federally supervised financial institution.

Understanding the National Trust Bank Charter

The national trust bank charter is a specific type of banking charter that differs meaningfully from a full-service commercial bank license, and understanding those differences is essential to evaluating what Bridge can and cannot do under this framework.

A national trust bank, as chartered by the OCC, is authorized to conduct fiduciary activities — essentially, holding and managing assets on behalf of others. In the digital asset context, this translates to custodying cryptocurrencies, issuing stablecoins, managing the reserves that back those stablecoins, and facilitating settlements. What a national trust bank cannot do is accept demand deposits (like checking or savings accounts), make commercial loans, or access FDIC deposit insurance. It is, by design, a more limited charter than what traditional banks like JPMorgan Chase or Bank of America operate under.

However, the charter carries significant advantages for crypto firms. First, it provides a single federal regulatory framework, eliminating the need to navigate the patchwork of state-by-state money transmitter licenses that has historically burdened crypto companies. Second, national trust banks gain access to Federal Reserve payment systems, including Fedwire — the real-time gross settlement system that underpins the U.S. financial infrastructure. Third, the federal charter confers a degree of institutional credibility that state-level licenses cannot match, which is increasingly important as institutional investors and large corporations evaluate whether to engage with stablecoin-based payment systems.

Crucially, because a national trust bank is typically not classified as a "bank" under the Bank Holding Company Act, Stripe itself would not be subject to the Federal Reserve's consolidated supervision as a bank holding company. This means Stripe can own Bridge's trust bank without becoming a regulated bank holding company — a significant structural advantage that allows it to maintain its existing corporate and operational flexibility.

How Bridge's Charter Compares to the December 2025 Approvals

Bridge is the sixth company to receive a conditional national trust bank charter from the OCC for digital asset activities. The five firms approved in December 2025 were a mix of de novo charters (newly created banks) and conversions from state trust company charters. Circle's First National Digital Currency Bank and Ripple National Trust Bank were de novo applicants, while BitGo Bank & Trust, Fidelity Digital Assets, and Paxos Trust Company converted their existing state trust charters to national trust bank charters.

Bridge's application follows the de novo path, meaning it is creating an entirely new nationally chartered institution rather than converting an existing one. What distinguishes Bridge from many of these peers is its direct integration with Stripe's global payments infrastructure — a connection that could enable stablecoin usage at a scale that standalone crypto firms would struggle to achieve independently.

The GENIUS Act: America's First Comprehensive Stablecoin Law

Bridge's charter pursuit does not exist in a regulatory vacuum. It is taking place against the backdrop of the most significant piece of cryptocurrency legislation ever enacted in the United States: the Guiding and Establishing National Innovation for U.S. Stablecoins Act, better known as the GENIUS Act.

Signed into law on July 17, 2025, the GENIUS Act represents the first comprehensive federal framework governing stablecoin issuance in the U.S. Its core provisions include a requirement that stablecoin issuers maintain one-to-one reserve backing with high-quality liquid assets — specifically, U.S. coins and currency, insured bank deposits, short-dated Treasury bills, repurchase agreements backed by Treasuries, government money market funds, and central bank reserves. The Act also mandates that issuers establish and publicly disclose their redemption procedures, submit periodic reports on outstanding stablecoins and reserve composition (certified by executives and audited by registered accounting firms), and comply with the Bank Secrecy Act for anti-money laundering purposes.

Under the GENIUS Act, only three categories of entities may issue payment stablecoins: insured depository institutions (banks and credit unions), subsidiaries of banks, and nonbank financial institutions that receive approval from the Office of the Comptroller of the Currency. Bridge, as a nationally chartered trust bank, would fall into this third category — making the OCC charter not merely advantageous but effectively mandatory for its stablecoin issuance ambitions.

Bridge has stated publicly that its systems already meet the compliance standards outlined in the GENIUS Act. If true, this would position the company favorably for final charter approval, as the OCC will evaluate applicants in part based on their readiness to comply with the Act's requirements once its implementation period concludes — expected no later than January 2027, or 18 months after enactment.

Issuers Above $50 Billion Face Enhanced Scrutiny

One particularly notable provision of the GENIUS Act applies to issuers with more than $50 billion in outstanding stablecoins, who must submit audited annual financial statements. Given that the current market leaders — Tether's USDT and Circle's USDC — operate at this scale, and given Stripe's ambitions to integrate stablecoins into its global payments network, this threshold could become relevant for Bridge faster than many expect.

Industry Reactions: Optimism, Caution, and a Growing Policy Debate

Bridge's charter approval has drawn reactions from across the financial services and crypto industries, reflecting the complex and sometimes contradictory ways that market participants view the convergence of fintech and traditional banking.

On the optimistic side, Nic Puckrin, co-founder of crypto media outlet Coin Bureau, told American Banker that "the news of Stripe's Bridge getting a national trust charter for stablecoin products is positive for the sector overall." Analysts cited by Bloomberg suggest that stablecoins could handle a significant portion of global payments within the next decade, substantially reducing costs and improving efficiency. For proponents, Bridge's charter represents validation: a major payments company, backed by institutional-grade regulatory oversight, entering the stablecoin market with the infrastructure to compete at scale.

The criticism, however, has been pointed. The Independent Community Bankers of America (ICBA) has been among the most vocal opponents. Mickey Marshall, ICBA's Vice President and Regulatory Counsel, warned that "by offering stablecoins to consumers, Bridge is attempting to offer a product that is a functional substitute for demand deposits without becoming subject to the laws and regulations that bind other banks, including the Bank Holding Company Act." The ICBA's concern centers on regulatory arbitrage — the idea that national trust bank charters allow companies to perform bank-like functions while avoiding the stricter capital requirements, consumer protections, and community reinvestment obligations that apply to full-service commercial banks.

The American Bankers Association has echoed these concerns, urging the OCC to slow its pace of charter approvals for crypto-focused firms, arguing that companies could use trust charters to circumvent stricter oversight while the GENIUS Act's implementing regulations are still being finalized. Former OCC Comptroller Brian Brooks, who pioneered crypto-focused charter approvals during his tenure, has argued in response that bank charters are precisely the mechanism that keeps crypto companies within the regulatory perimeter rather than outside it.

The Broader Question: Should Fintech Companies Be Banks?

Bridge's charter reignites a question that has simmered in financial regulation since at least 2018, when the OCC first proposed a special-purpose fintech charter: at what point does a technology company processing financial transactions become, functionally, a bank? And when it does, should it be regulated as one? The national trust bank charter represents a middle ground — more regulated than a state money transmitter license, less regulated than a full-service bank — but whether that middle ground is appropriate for companies operating at Stripe's scale remains hotly contested.

The Stablecoin Market: Scale, Growth, and Why It Matters

Bridge's regulatory milestone is occurring during a period of extraordinary growth in the stablecoin market. Understanding the scale of that market is essential to grasping why federal regulators, traditional banks, and fintech companies are all paying such close attention.

The total market capitalization of stablecoins grew from approximately $205 billion at the start of 2025 to roughly $300 billion by year-end — a nearly 50% increase in a single year. Over a five-year horizon, the expansion is even more dramatic: the market grew from $28 billion in 2020 to $282 billion in 2025, a tenfold increase. Transaction volumes have surged in parallel, with approximately $33 trillion in stablecoin transactions recorded during 2025 alone, representing a 72% increase from the prior year. Monthly transaction volumes approached $1 trillion by mid-2025.

Two stablecoins dominate the market. Tether's USDT holds the largest share, with a market cap of approximately $187 billion, while Circle's USDC stands at roughly $73 billion. Together, these two tokens account for about 93% of total stablecoin market capitalization. Looking ahead, projections from Citi Research suggest the stablecoin market could reach $1.9 trillion by 2030 in a base case scenario, with some analysts forecasting that circulation could exceed $1 trillion as early as late 2026.

For Stripe and Bridge, these numbers represent both the opportunity and the competitive landscape. Entering a market currently dominated by Tether and Circle requires not just regulatory approval but a compelling value proposition — and Stripe's global merchant network may be exactly that differentiator.

Historical Parallels: When Technology Companies Sought Banking Charters

Bridge's pursuit of a federal banking charter is not without historical precedent, and examining earlier examples offers useful context for understanding the potential trajectory.

In the early 2000s, Walmart attempted to obtain an industrial loan company (ILC) charter, which would have allowed the retail giant to operate a limited-purpose bank. The effort was met with fierce opposition from the banking industry and consumer groups, who argued that mixing commerce and banking created unacceptable risks. Walmart ultimately withdrew its application in 2007. More recently, in 2020, the OCC granted a national bank charter to Varo Money, making it the first consumer fintech to receive a full national bank charter — a process that took roughly three years from application to final approval.

The crypto sector's experience with banking charters has been more turbulent. Anchorage Digital received a conditional national trust bank charter from the OCC in January 2021, becoming the first federally chartered digital asset bank. However, subsequent enforcement actions and policy reversals during the regulatory uncertainty of 2022-2023 chilled the industry's enthusiasm. It was not until the GENIUS Act's passage in 2025 and the OCC's December 2025 batch approvals that the path to federal charters for crypto companies became clearly defined.

Bridge's application benefits from this clearer regulatory environment, but history suggests that the road from conditional approval to full operation is rarely smooth. Regulatory requirements can evolve, political administrations change, and market conditions shift. The companies that succeed are those that build compliance and risk management into their operational DNA, not merely as an overlay.

What Comes Next: Bridge's Path to Final Approval and Beyond

With conditional approval in hand, Bridge now enters the most critical phase of its charter process. The company must demonstrate to the OCC that it meets every condition specified in the approval, which typically includes live demonstrations of compliance systems, AML/BSA program audits, capital adequacy verification, and governance reviews. Based on precedent, this process could take anywhere from several months to over a year.

If Bridge successfully obtains its final charter, the implications extend well beyond the company itself. A federally chartered, Stripe-integrated stablecoin platform could fundamentally alter the economics of cross-border payments, where traditional correspondent banking fees remain stubbornly high. It could provide small and medium businesses with access to dollar-denominated digital payment rails without the overhead of traditional banking relationships. And it could force established payment networks — Visa, Mastercard, and SWIFT among them — to accelerate their own stablecoin and digital asset strategies.

The competitive landscape is also evolving rapidly. With Circle, Ripple, BitGo, Fidelity, and Paxos all pursuing national trust bank charters, Bridge will enter a market where multiple federally supervised stablecoin issuers compete for market share. Stripe's distribution advantage is significant, but execution — in terms of both regulatory compliance and product development — will ultimately determine whether Bridge can translate that advantage into market leadership.

For the broader cryptocurrency industry, Bridge's charter represents a maturation signal. The era of stablecoins operating in regulatory gray zones is ending. What is emerging in its place is a regulated, federally supervised stablecoin sector that looks less like the Wild West of early crypto and more like the institutional financial infrastructure that traditional markets rely on. Whether that is a net positive — bringing stability, trust, and mainstream adoption — or a net negative — concentrating power in the hands of large corporations and limiting the decentralized ethos that originally defined crypto — depends largely on one's perspective. What is beyond debate is that the landscape has changed, and Bridge's charter is one of the clearest markers of that transformation.

Frequently Asked Questions

What does Bridge's OCC conditional approval mean?

Bridge has received conditional approval from the Office of the Comptroller of the Currency (OCC) to form a national trust bank. This means Bridge can proceed toward becoming a federally chartered institution that issues stablecoins, custodies digital assets, and manages reserves under direct federal supervision. However, conditional approval is not a final charter — Bridge must first satisfy specific regulatory conditions, including establishing robust anti-money laundering programs and maintaining minimum capital and liquidity reserves, before it can begin operating as Bridge National Trust Bank.

Can Bridge accept deposits or offer checking accounts like a regular bank?

No. A national trust bank charter is more limited than a full-service commercial bank charter. Under this framework, Bridge cannot accept demand deposits, offer checking or savings accounts, make commercial loans, or access FDIC deposit insurance. Its permitted activities are confined to fiduciary functions: stablecoin issuance, digital asset custody, reserve management, and related settlement services. This distinction is at the core of the ongoing policy debate about whether trust charters provide adequate regulatory oversight for companies performing bank-like functions.

How does the GENIUS Act affect Bridge's stablecoin operations?

The GENIUS Act, signed into law in July 2025, is the first comprehensive federal framework governing stablecoin issuance in the United States. It requires stablecoin issuers to maintain one-to-one reserve backing with high-quality liquid assets, establish publicly disclosed redemption procedures, submit periodic audited reports on reserves and outstanding stablecoins, and comply with the Bank Secrecy Act. Bridge has stated that its systems already meet these standards. As a nationally chartered nonbank stablecoin issuer, Bridge would fall under the OCC's direct regulatory oversight as specified by the GENIUS Act.

Which other companies have received similar OCC charter approvals?

In December 2025, the OCC conditionally approved five crypto-focused firms for national trust bank charters: Circle (operating as First National Digital Currency Bank), Ripple National Trust Bank, BitGo Bank & Trust, Fidelity Digital Assets, and Paxos Trust Company. Of these, Circle and Ripple applied for de novo (new) charters, while the other three converted existing state trust company charters. Bridge is the sixth firm to receive this type of conditional approval, and the first to do so following the December 2025 batch.

Why did Stripe acquire Bridge, and how much did it pay?

Stripe acquired Bridge in October 2024 for approximately $1.1 billion, making it the largest acquisition in Stripe's history. The deal closed in February 2025. Stripe's motivation was strategic: after abandoning Bitcoin payment support in 2018 due to scalability and fee concerns, Stripe saw stablecoins — digital currencies pegged to the U.S. dollar — as the blockchain technology most likely to transform global payments. Bridge's API-based infrastructure enables businesses to use stablecoin rails seamlessly, and combining that technology with Stripe's massive global merchant network creates a uniquely powerful distribution channel.

Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or investment advice. Cryptocurrency and stablecoin investments carry inherent risks. Readers should conduct their own research and consult qualified professionals before making any financial decisions. Spoted Crypto assumes no liability for actions taken based on the information provided herein.