Key Takeaways
-
The OCC approved national trust bank applications from Bastion, Catena, and Agora on Sept. 18.
-
Agora plans to move AUSD issuance into its proposed bank, while Bastion intends to provide white-label stablecoin services.
-
Ripple’s proposed bank would safeguard RLUSD reserves and custody crypto.
Ripple’s push to place part of its stablecoin business under federal banking supervision is becoming considerably less exclusive.
The Office of the Comptroller of the Currency (OCC) conditionally approved three crypto-focused national trust banks on Sept. 18, adding Bastion, Catena, and Agora to a rapidly expanding field of federally regulated digital asset institutions.
The decisions may weaken the scarcity value of Ripple’s preliminary approval, particularly since two of the new applicants plan to compete directly in the stablecoin infrastructure space.
OCC Approves Three Crypto Banks in One Day
The OCC’s decisions page shows that the regulator approved all three applications on the same day.
Bastion Platforms Trust Company received permission to convert its existing New York trust company into Bastion Platforms National Trust Company.
Meanwhile, the OCC granted preliminary conditional approval for two new institutions: Catena Trust Bank and Agora National Trust Bank
These are limited-purpose banks rather than conventional retail banks; their proposed activities revolve around:
The three business models also overlap with Ripple to different degrees.
Agora Plans to Bring AUSD Into Its Bank
Agora represents the clearest stablecoin comparison.
According to the OCC’s decision, Agora National Trust Bank would focus on issuing dollar-backed stablecoins and providing digital asset custody.
It would also offer programmable payments and investment advisory services to institutional customers holding assets with the bank.
Most significantly, Agora intends to transfer the issuance of AUSD from its Bermuda-based entity to the proposed US bank.
The planned transition would move AUSD’s reserve assets and associated liabilities into Agora National Trust Bank through a formal cutover process.
That would make Agora’s proposed bank more directly involved in stablecoin issuance than Ripple National Trust Bank.
Bastion Targets the White-Label Stablecoin Market
Bastion is pursuing a different model: helping other companies launch stablecoins under their own brands.
The OCC’s approval covers white-label stablecoin issuance, custodial wallets, conversion services, and support for other regulated issuers.
Bastion said the charter would allow it to combine custody, payment, and issuance services within a single federally supervised entity.
The company does not currently issue a stablecoin under its own name.
Instead, it provides the infrastructure through which enterprises can operate their own programs.
Its customers and backers also give it institutional reach.
Bastion is backed by Coinbase Ventures and Andreessen Horowitz, while Sony Bank’s global stablecoin initiative runs on its infrastructure.
That potentially puts Bastion in competition with Ripple for companies seeking a regulated stablecoin and payment infrastructure without having to build the entire system themselves.
Catena Adds Custody and Clearing Competition
Catena’s model is less directly comparable to RLUSD.
The proposed Catena Trust Bank would provide investment management and execution services covering fiat currencies, securities, and digital assets.
Those assets would include payment stablecoins compliant with the GENIUS Act.
Catena is primarily building for AI agents and the businesses that control them.
Its platform is designed to allow software agents to hold funds and make payments, while human operators set spending limits, approve activity, and audit transactions.
While it is not, therefore, simply another RLUSD competitor, its planned custody and stablecoin services would compete for some of the same activity that Ripple hopes to attract.
How Is Ripple’s Bank Different?
The proposed Ripple National Trust Bank would not issue RLUSD.
Ripple’s conditional approval states that RLUSD would remain issued by Standard Custody & Trust Company, Ripple’s New York-regulated subsidiary.
The national trust bank would instead manage a segregated pool of assets that backs RLUSD and act as the collateral trustee for token holders.
It would also provide crypto custody to Ripple affiliates and other institutional customers.
That makes Ripple’s proposed bank primarily a reserve, collateral, and custody institution.
Ripple’s advantage has not disappeared, however.
Its existing payment network, institutional relationships, and control over RLUSD still distinguish it from the new applicants.
Conditional Approval Is Not Permission to Open
None of the decisions are final; each bank must meet requirements before launch.
Agora and Catena must raise their required capital, establish compliance and security systems, undergo pre-opening examinations, and receive final OCC approval.
Their preliminary approvals expire if they do not open within 18 months, unless the regulator grants an extension.
Meanwhile, Bastion must satisfy the OCC’s conditions and complete that conversion within six months.
Ripple’s approval was also preliminary.
Its bank cannot begin operating until it completes the OCC’s pre-opening requirements and receives final authorization.
Top Trending Crypto Articles
The post Ripple’s Banking Edge Shrinks as OCC Approves Three Crypto Rivals appeared first on ccn.com.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
