Coinbase stated that the strategic goal of the application is to “build a bridge between the crypto economy and the traditional financial system.” However, the company emphasized that it does not intend to obtain a banking license. The statement said, “Clear rules and the trust of our regulators give us the opportunity to innovate. At the same time, they help us ensure appropriate oversight and security.”

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License Acts as a Bridge Instead of a Bank

Former Coinbase employee Luke Youngblood said the new license will enable the company to build its own payment and transfer infrastructure. This means Coinbase will be able to offer on-ramp and off-ramp transactions directly, without needing partner banks. Youngblood also revealed that Coinbase’s retail application has significantly evolved since 2022. He then noted that it operates more efficiently thanks to its “high-level engineering capabilities.”

Meanwhile, analyst Brendan Pedersen pointed out that trust companies have a more limited scope of activity compared to banks, but that this difference has been narrowing in recent years.

Circle and Ripple Join Coinbase’s Move

Coinbase’s application coincided with similar moves by other crypto companies. On July 1, stablecoin issuer Circle applied for a national trust bank license. Ripple Labs soon followed suit, applying for the same license. Ripple CEO Brad Garlinghouse said this approval would be “a new and unique benchmark of trust” in the stablecoin market.

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