Odaily Planet Daily report: Zerohash, which provides crypto infrastructure to institutions such as Morgan Stanley and E*Trade, had its application for a U.S. trust bank charter rejected by the Office of the Comptroller of the Currency (OCC). OCC records show the application was returned on July 17. Zerohash stated that this rejection was administrative rather than a substantive denial, and the company plans to resubmit its application this month, adopting a phased approach by first focusing on obtaining approval for national trust activities. Zerohash is currently a state-chartered trust bank and provides crypto infrastructure to institutions including BlackRock, Franklin Templeton, and Stripe. Previously, Zerohash was valued at over $1.5 billion during its fundraising efforts. The company is also facing a lawsuit filed by its former chief compliance officer, who claims he was terminated for disclosing more than 200 compliance gaps; Zerohash attempted to compel arbitration in the case, but those efforts have been preliminarily denied.
Zerohash's U.S. Trust Bank License Application Rejected by OCC; Plans to Resubmit This Month
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Summary
Zerohash confirmed that its application for a U.S. trust bank license was rejected by the OCC on July 17. The company described the decision as an administrative action and plans to resubmit this month, focusing on obtaining national trust charter approval. Zerohash currently operates as a state-chartered trust bank and serves major clients such as BlackRock and Stripe. The firm has faced legal challenges, including a CFTC-related lawsuit from a former compliance officer. As liquidity in crypto markets remains a key concern, Zerohash’s resubmission may signal renewed efforts to align with regulatory expectations.
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