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OCC Clarifies Crypto Custody for Trust Banks as Morgan Stanley Files Charter and Citi Prepares Bitcoin Service

The OCC’s April 1 rule confirms that national trust charters can center on custody and safekeeping of digital assets.

Overview

  • Morgan Stanley filed on Feb. 18 to form Morgan Stanley Digital Trust, a de novo national trust bank that would offer crypto custody along with trading, swaps, transfers and staking.
  • Citigroup plans to launch institutional bitcoin custody later this year, aiming to let clients hold BTC alongside securities and cash with cross‑margining and standard SWIFT or API instructions.
  • The OCC’s wording change replaces a narrow fiduciary focus with broader trust‑company operations, explicitly allowing custody and safekeeping as a core business for national trust banks.
  • Multiple crypto firms hold conditional OCC approvals, including Ripple, BitGo, Fidelity Digital Assets, Paxos, Stripe’s Bridge and Crypto.com, yet few have fully opened, with Anchorage a notable exception.
  • Industry and state banking groups, including the Bank Policy Institute and CSBS, question the OCC’s authority and warn of “Franken‑charters,” while access to Federal Reserve payment services remains unresolved.