OCC Confirms Banks Can Offer Crypto Custody and Execution Services

The clarification confirms that banks may buy or sell crypto-assets held in custody at the direction of their customers. It also allows these institutions to outsource such services to third-party providers, as long as they follow sound third-party risk management practices.

Building on Prior Guidance

The OCC’s latest interpretive letter builds on the foundation laid by previous guidance, including Interpretive Letters 1170 and 1183, which also addressed the role of banks in crypto-related services. The updated letter reflects the regulator’s intent to offer clarity on how banks can legally navigate the growing demand for digital asset services.

Safety, Soundness, and Compliance Remain Key

While the OCC’s letter expands operational clarity, it reiterates that banks must perform all crypto-asset activities—whether directly or through sub-custodians—in a manner that is both safe and sound and in full compliance with applicable regulations.

The update marks another step in aligning federal banking rules with the evolving digital asset landscape, offering banks a clearer framework to engage in custody and execution of crypto assets as demand for institutional-grade services continues to rise.

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