A Moment of Regulatory Clarity
After years of uncertainty, the digital asset and payments landscape is entering a new phase of definition. Recent legislation, notably the GENIUS and CLARITY Acts, has begun to formalize how U.S. regulators view stablecoins, fiduciary activity and digital custody.
For banks and fintech firms, this clarity marks a turning point. What was once a gray area for innovative custody and token-based payment models is now a race to secure the right regulatory footing, primarily through trust charters and other supervised structures that enable compliant innovation.
The shift isn’t just legal; it’s strategic. Obtaining a charter unlocks credibility with institutional clients and regulators alike, signaling that a business is built for longevity in a market where compliance is the new competitive edge.
Why Trust Charters Are Suddenly in Demand
A growing number of banks, fintech and digital asset platforms are seeking state or national trust charters. These approvals allow institutions to custody digital assets, manage stablecoin reserves, or provide fiduciary services under clear supervisory oversight.
The drivers are both defensive and opportunistic:
Regulatory alignment: Preempts enforcement risk by aligning early with OCC or state examiners.
Market access: Enables partnerships with institutional investors and counterparties who increasingly demand chartered custodians for risk management.
Strategic flexibility: Provides a launchpad to expand into payments, treasury and lending once the compliance foundation is in place.
Yet, the impact goes further. When an institution earns a charter, its customers gain confidence that their assets are safeguarded within a regulated, accountable framework.
In an ecosystem built on code and speed, that oversight becomes a differentiator — a signal of reliability and transparency that strengthens every transaction.
This creates a virtuous cycle: charters enhance institutional credibility, which deepens client trust, which in turn fuels broader market adoption. In short, the charter isn’t just a regulatory milestone. It’s a business advantage grounded in confidence and control.
Federal vs. State: Two Paths to Legitimacy
The OCC continues to review and conditionally approve novel trust and national charter applications. Its approach remains deliberate but open, emphasizing strong governance, BSA/AML controls, and operational resilience. Successful applicants tend to demonstrate early, transparent engagement and regulator-fluent documentation.
Meanwhile, several states — including Wyoming, South Dakota, Texas and Florida — have emerged as credible alternatives. Their banking departments have adopted frameworks that mirror GENIUS Act standards while offering faster approval cycles and more flexibility around business models.
Executive Insight
Federal charters provide prestige and universal recognition; state charters offer agility and cost efficiency. The right path depends on your risk appetite, capital plan, and target client base.
What Regulators Are Really Looking For
The regulatory tone around digital asset custody and payments have shifted from hesitation to pragmatism. Regulators are no longer asking if banks and fintechs should engage in digital asset activities, but how responsibly they can do so.
Today’s examiners expect five essentials of a regulator-ready trust charter:
Strategic Clarity
-
-
- Define your charter type, business purpose and digital asset scope under GENIUS and CLARITY.
- A clear plan shows regulators that you understand the limits of permissible activity.
-
Governance & Competency
-
-
- Boards and executives must own oversight.
- Regulators look for crypto literacy, independent risk and audit functions, and documented escalation paths.
-
Integrated Risk & Compliance
-
-
- Link fiduciary, operational and financial crime controls into a single framework.
- BSA/AML, OFAC, and vendor risks must be managed holistically.
-
Operational Resilience
-
-
- Show proof of secure custody execution, vendor oversight, and tested incident response.
- Regulators want evidence of continuity, not just policy.
-
Regulatory Engagement
-
-
- With supervisory “non-objection” lifted, proactive dialogue matters.
- Examiner-ready materials and transparent remediation plans demonstrate maturity.
-
Institutions that approach charter preparation as an exercise in organizational design, not documentation, tend to move faster through review and emerge stronger from supervision.
Case in Point: Building a Regulator-Ready Platform
We recently partnered with a PE-backed digital asset and alternatives platform to put these principles into practice. The firm sought a national trust charter to operate as a qualified custodian for both digital and traditional assets, requiring readiness that could withstand examiner scrutiny.
Our approach included:
- Crafting a comprehensive business plan aligned with OCC supervisory priorities.
- Developing a policy suite covering BSA/AML, OFAC, operations, risk and information security.
- Designing a scalable vendor and IT architecture to meet examiner expectations.
- Coordinating directly with OCC and Federal Reserve Board teams on governance and organizational readiness.
The result: charter approval, a Day One live custody operation, and a clean exam record supported by a committed remediation calendar.
The takeaway? Success isn’t about checking compliance boxes. It’s about designing an institution that speaks the regulator’s language in risk, governance and operations.
Beyond Compliance: Strategic Implications
As regulatory frameworks mature, trust charters are shifting from a defensive necessity to a strategic enabler.
For fintechs, they represent credibility and access to institutional capital.
For banks, they provide a bridge to innovation — the ability to expand digital-asset services without compromising supervisory relationships.
And for both, they mark a deeper truth: regulatory fluency is now part of competitive advantage.
Firms that integrate compliance into their product and customer design, rather than treating it as a final step, will move faster, scale cleaner and face fewer post-approval surprises.
Looking Ahead
The convergence of innovation and oversight is reshaping how financial institutions grow. Over the next 12–18 months, expect to see:
- More fintechs partnering with chartered entities or pursuing direct applications.
- Greater OCC and state collaboration under the GENIUS and CLARITY frameworks.
- Increased scrutiny of operational resilience, not just capital adequacy.
The market is only maturing, not slowing down. The winners will be those who can interpret regulatory intent, build credible controls and sustain transparent engagement with supervisors.
How SolomonEdwards Can Help
SolomonEdwards helps financial innovators navigate the complex journey from concept to charter. Acting as a trusted intermediary between innovators and supervisors, we provide compliant, scalable pathways for fintechs, community banks and asset managers entering digital custody and fiduciary operations.
Our end-to-end charter support spans strategy, organizational build-out and examiner engagement, enabling clients to launch compliant trust businesses without surprises.
About the Authors
Meredith Rousseau is a Senior Vice President in the Banking and Financial Services practice. A former banking executive, Meredith brings a blend of operational expertise and tactical acumen to help clients propel their digital transformation in a practical, sound manner.
To learn more, connect with Meredith at mrousseau@solomonedwards.com.
