National Bank Charter

Definition ∞ A National Bank Charter is a license granted by the Office of the Comptroller of the Currency (OCC) in the United States, authorizing an institution to operate as a national bank. This charter permits the entity to conduct banking activities nationwide under federal supervision. For digital asset firms, obtaining such a charter signifies a high level of regulatory acceptance and allows them to offer traditional banking services alongside digital asset operations. It subjects the institution to stringent capital, liquidity, and risk management standards.
Context ∞ The pursuit of National Bank Charters by digital asset companies is a significant development, indicating a desire for legitimacy and broader financial integration. This trend prompts discussions about how existing banking regulations apply to novel blockchain-based business models. News often covers applications, approvals, or rejections of these charters, providing insight into the evolving regulatory stance on digital asset institutions.