Dakota seeks an OCC national trust bank charter to offer digital asset custody and stablecoin issuance, reducing intermediary layers for clients and joining a wave of fintech firms pursuing direct federal supervision.
Programmable money movement firm Dakota is seeking a national trust bank charter from the Office of the Comptroller of the Currency (OCC), according to a Tuesday (Aug. 4) message to customers.
The charter would allow Dakota to become "a federally regulated provider of digital asset custody, stablecoin issuance and related services," the message said.
"For you, that means fewer layers between your product and the financial services underneath it," the message said. "Fewer intermediaries mean more control, more reliability and a cleaner experience for the people you serve. That's always been the point. The less that sits between you and what you're building, the better the product you can put in front of your customers."
Dakota joins a small group of fintech firms pursuing de novo bank charters after years of muted activity, as PYMNTS reported last month. "Organizers continue to pursue de novo institutions for a variety of business models, reflecting a broader view among some FinTechs that direct federal supervision can offer greater long-term control than relying exclusively on sponsor-bank relationships," that report said.
A national charter provides advantages beyond regulatory status. It can offer a single federal supervisory framework, expand lending and deposit capabilities, reduce reliance on third-party banking partners, and give institutions more authority over product development and customer relationships.
Rodney E. Hood, former acting comptroller of the currency, said in a January interview with Competition Policy International (CPI) that firms seeking charters "want to provide 21st-century solutions to their clients and customers. They recognize the strength and vitality that comes from a national bank charter."
Digital lending platform Upstart received conditional approval for an OCC banking charter last month. Annie Delgado, chief risk officer at Upstart and proposed CEO of Upstart Bank, said in a news release that the charter process is time-consuming and rigorous. "We've been challenged extensively throughout the process, and that's exactly what should happen when an institution is seeking the privilege of becoming a national bank," Delgado said.
Dakota's move comes as the FIS stock page holds an Alpha Score of 32/100, reflecting a Weak label in the technology sector.
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