The Office of the Comptroller of the Currency (OCC) has authorized United States national banks to hold cryptoassets on their balance sheets to support on-chain operations. According to interpretive letter 1186 issued on November 18, 2025, this measure establishes a clear framework allowing banks to fund network fees and conduct operational testing with digital assets directly within the banking system.
Expanded Regulatory Clarity for Banks
The authorization permits banks to hold crypto as principal for on-chain operations, including the payment of network fees. Gas fees—charges required for processing blockchain transactions—may now be covered through institution-held digital assets, integrating these costs into routine operational activity.
The guidance also enables national banks to expand their institutional custody services for keys and digital assets under regulated and adaptable custodial structures. This includes both fiduciary and non-fiduciary roles, allowing institutions to safeguard client crypto according to varying operational and compliance needs.
Banks are further permitted to execute and settle transactions on behalf of clients and outsource related activities to qualified third parties under strict risk-management requirements. This acknowledges the growing importance of specialized providers while ensuring oversight remains aligned with supervisory expectations.
The letter broadens institutional involvement by authorizing support for stablecoin reserves and the use of crypto in controlled testing and development environments. These permissions strengthen banks’ ability to participate in stablecoin issuance, management and technical innovation within regulatory boundaries.
The guidance builds on a sequence of 2025 clarifications that dismantled earlier barriers to institutional crypto engagement. The rescission of restrictive accounting guidance and reduced emphasis on reputational risk earlier in the year opened wider avenues for banks to expand participation in digital assets.
Overall, the OCC’s interpretation positions national banks to operate more actively on-chain, reducing frictions for treasuries and trading desks while creating new revenue opportunities. With more than 200 public companies shifting toward digital assets, institutional demand is set to accelerate as banks implement these capabilities under coordinated regulatory oversight.