@galaxyhq ($GLXY) has applied to the US Office of the Comptroller of the Currency (OCC) to establish Galaxy National Bank, a proposed national trust bank headquartered in New York. According
@galaxyhq ($GLXY) has applied to the US Office of the Comptroller of the Currency (OCC) to establish Galaxy National Bank, a proposed national trust bank headquartered in New York. According to the company's announcement, the application was submitted by its subsidiary, Galaxy Digital LP.
If approved, the bank would operate as a federally regulated trust institution under OCC supervision. It would provide custody, trading and staking services for digital assets, along with fiduciary investment advisory services, and would serve clients nationwide under a single federal framework.
Trust banks hold and manage assets for clients but do not take deposits or make loans. For Galaxy, a national charter would let the firm bring more of its services under one federal regulator rather than managing state-by-state requirements.
Founder and CEO Mike Novogratz described the charter as an important next step in bringing more services under a single federal framework as adoption accelerates, according to Banking Dive. The application remains subject to OCC approval. Mugglehead reported that the company's release gives no projected bank revenue, capital commitment or opening date.
The filing follows a recent state-level approval. In May, the New York State Department of Financial Services granted GalaxyOne Prime NY a BitLicense and Money Transmission License, according to CoinDesk. Galaxy said that approval added to a footprint of more than 50 licenses globally. The company currently holds more than 50 licenses across the US, Europe and Asia, including SEC-registered broker-dealer subsidiaries, a CFTC-registered swap dealer subsidiary and a UK subsidiary authorized by the Financial Conduct Authority, Investing.com reported.
The application arrives amid litigation over the OCC's authority to grant this type of charter. FinanceFeeds reported that on 2 October the Independent Community Bankers of America sued the OCC, arguing that the National Bank Act does not provide for a category of non-depository national bank for crypto firms. The same report said Galaxy lists the challenge among its risk factors without naming the case.
The outcome of the OCC review, and of the lawsuit, will determine whether Galaxy can consolidate custody, trading and staking under a national bank charter.
StreetInsider: Galaxy Digital applies for national trust bank charter with OCCBanking Dive: Galaxy Digital applies for OCC charterCoinDesk: Galaxy receives New York BitLicense
