U.S. Banking Agency Gives Blockchain Bank OpenReserve Initial OK to Operate

OCC grants provisional charter to blockchain bank OpenReserve

The U.S. Office of the Comptroller of the Currency (OCC) has given preliminary approval for OpenReserve Bank to operate. The Salt Lake City-based institution is a crypto-native bank that combines traditional banking with blockchain technology.

The OCC approved OpenReserve as a full-service national bank with "embedded onchain settlement." This means the bank uses blockchain networks, which are digital record-keeping systems, to process transactions. The approval is provisional, meaning OpenReserve still needs final approval from the OCC to receive a permanent charter.

Backed by top crypto investors

The bank is supported by some of the biggest names in the digital asset industry. Major backers include the venture capital firm Andreessen Horowitz (also known as a16z), Jump Capital, and Coinbase Ventures. Other investors include Acrew, Wintermute Ventures, Clocktower, Quona, AAF Management, and Zero Knowledge Ventures.

a16z explained in a post that they wanted a bank that never closes. They described it as an "always-on, always available" institution, rather than a traditional bank that operates during specific hours.

Focus on institutional services and stablecoins

OpenReserve was designed to serve institutional customers. Its main services will include treasury management, stablecoin issuance, and tokenized deposits. A stablecoin is a type of cryptocurrency whose value is tied to a fiat currency, such as the U.S. dollar, to reduce price swings.

The bank stated it is building its operations to comply with the GENIUS Act, a new federal law that sets rules for stablecoin issuers.

Part of a growing wave of crypto banks

This approval adds to a growing list of crypto-friendly financial institutions. The Trump administration, including OCC head Jonathan Gould, has moved to welcome digital asset businesses into the regulated banking system. On the same day as the OpenReserve news, the OCC also approved a conditional charter for British fintech company Revolut to do business in Connecticut.

What remains unconfirmed

While OpenReserve announced the preliminary approval, the OCC did not immediately respond to requests to confirm the status. The bank must now go through the final steps to secure its permanent national bank charter.

• CoinDesk