On September 18 local time, the U.S. Office of the Comptroller of the Currency (OCC) conditionally approved applications by Agora, Catena Labs, and Bastion to form or convert federally chartered trust banks. Agora and Catena Labs plan to establish new trust banks, while Bastion plans to convert an existing New York state trust company subsidiary into a federally chartered trust bank.
The three companies are pursuing different businesses. Agora, the issuer of the dollar stablecoin AUSD, plans to offer stablecoin issuance and reserve management, custody, payment, settlement, and investment advisory services through the new bank. After it opens, Agora plans to transfer issuance of AUSD from its Bermuda entity to the new bank. Catena Labs, co-founded by Circle co-founder Sean Neville, describes itself as a financial institution for artificial-intelligence agents. Its new bank plans to provide custody and investment management for fiat currency, securities, and crypto assets, as well as foreign-exchange and clearing services. Bastion issues corporate-branded stablecoins and provides other issuers with technology for issuance, burning, and redemption, as well as reserve management; the assets it may custody will be limited to stablecoins.
None of the three banks will be insured by the Federal Deposit Insurance Corporation. For their first three years of operation, the OCC requires Agora and Catena to maintain at least $10 million in base capital each and Bastion at least $6 million. Separately from capital-related liquidity requirements, each must also hold eligible liquid assets sufficient to cover 180 days of operating expenses in a wind-down during the same period. Activities that do not comply with the GENIUS Act and related regulations when they take effect must be adjusted, discontinued, or disposed of as necessary. Agora and Catena must raise their capital within 12 months of approval and begin operations within 18 months, while Bastion must complete its conversion within six months unless the OCC grants an extension.
There is also disagreement over the permissible scope of the charters. The Independent Community Bankers of America opposed Agora's application, questioning the activities a trust bank may conduct and competitive parity with existing banks. In its decision, the OCC concluded that Agora's proposed activities are permissible trust-company activities or activities incidental to them. The conditional approvals do not mean the three banks have begun operating; each must satisfy the OCC's conditions, complete the formation or conversion process, and receive final authorization to commence business.