OpenReserve Bank has received conditional approval from the OCC to establish a national bank in Utah, contingent on raising $210 million in capital.
OpenReserve Receives Preliminary Approval
OpenReserve Bank has been granted preliminary conditional approval by the Office of the Comptroller of the Currency (OCC) to establish a national bank in Salt Lake City, Utah. This decision, made on September 2, follows a nearly five-month review of their application submitted on April 13.
Conditions for Approval
To move forward, OpenReserve must raise at least $210 million in initial capital and maintain a Tier 1 leverage ratio of 12% during its first three years of operations. The bank has 12 months to secure this capital and 18 months to begin operations; otherwise, the approval will expire.
Strategic Business Model
Co-founder Diwakar Choubey emphasized that opting for a full-service national bank charter—rather than a national trust charter—was a calculated decision. This choice sets OpenReserve apart from competitors like Coinbase and Ripple, which have mainly pursued trust charters that restrict deposit-taking and lending activities.
OpenReserve's business model will include services such as tokenized deposits, treasury management, and foreign correspondent banking, in addition to a planned subsidiary for U.S. dollar-backed stablecoins. However, the application for this subsidiary is still pending with the OCC and must comply with the GENIUS Act governing stablecoin operations.
Broader Industry Context
In a related move, the OCC has also conditionally approved British fintech firm Revolut for a national bank charter in Connecticut. This aligns with Comptroller Jonathan Gould's strategy to integrate tech-focused firms into the regulated banking sector.
Despite recent approvals, there has been criticism regarding the pace of these charters. Senator Elizabeth Warren raised concerns about whether the approvals for crypto-related banks align with the National Bank Act, likening them to crypto banks rather than genuine trust companies. Nonetheless, the OCC continues to issue charters, including a national trust charter for the World Liberty stablecoin project linked to Donald Trump last August.
OpenReserve now faces a deadline of September 2027 to raise the required capital and must commence operations by March 2028 to retain its preliminary approval.
