FinTechs Pursue Diverse Federal Bank Charters

FinTech and digital-asset companies are actively seeking federal bank charters, but they are not all building the same kind of bank. The latest wave of applications to the Office of the Comptroller of the Currency (OCC) is creating institutions that may share a regulator but have vastly different business plans. Some aim to take insured deposits and make loans, while others are structured as trust banks focused solely on custody and related services.

The OCC received 40 applications for new, or de novo, banks in the 18 months leading up to August 11. This contrasts sharply with the 48 applications it received in the entire 14-year period from 2011 through 2024. Comptroller Jonathan Gould stated on August 19 that 23 of those 40 recent applications involve some form of digital-asset activity.

Revolut and Upstart Target Consumer Banking

Two prominent FinTechs are pursuing charters to operate more like traditional consumer banks. Revolut received conditional OCC approval on September 2 to establish Revolut Bank US. The company is still seeking necessary approvals from the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve. Once fully approved, Revolut says the bank would offer U.S. Customers loans, credit cards, and FDIC-insured deposits, alongside access to cryptocurrencies.

Upstart received its conditional OCC approval in July for Upstart Bank. Its applications for FDIC insurance and to become a bank holding company are still pending. The proposed digital-only bank would accept insured deposits and originate consumer loans nationwide. Upstart has stated this bank would complement, not replace, its existing funding relationships with other financial institutions.

National Trust Banks for Custody and Infrastructure

A different model is emerging with the national trust bank charter. These institutions do not take deposits or make loans. Instead, they provide custody and fiduciary services under federal supervision, a structure appealing to digital-asset firms.

Circle's approval illustrates a faster path for some; it received preliminary approval in December and final approval by July, while Revolut and Upstart remain at the conditional stage. The OCC amended its charter regulation in March, clarifying that trust banks can engage in activities related to traditional trust company operations. This provides a framework for firms like Block to bring existing custody services under federal oversight without building a deposit-taking business.

Chime Chooses Acquisition Over Application

FinTechs can also gain a national charter by acquiring an existing bank. Chime agreed to acquire its long-time banking partner, Stride Bank, for $590 million in cash. The deal is expected to close in the first half of 2027, pending regulatory approvals. Stride, already a nationally chartered bank, would become Chime Bank.

For Chime, ownership eliminates partner-bank fees and could reduce funding costs. It also allows for faster development of regulated products. This acquisition represents a distinct route to controlling bank infrastructure compared to the lengthy de novo application process.

The surge in charter activity is broadening the roster of federally regulated institutions without converging on a single model. Established banks now face potential competition from new entrants with focused authorizations. A deposit-taking national bank competes for customer funds and loans. A national trust bank brings specific activities like digital-asset custody under a federal umbrella. The OCC's 40 applications reveal strong demand, and the attached services show precisely which parts of the banking system these new players aim to control.