The OCC issued a preliminary conditional approval for the charter of Augustus Bank, N.A., a proposed national bank in Dallas, Texas. Augustus Bank plans to operate a wholly-owned stablecoin subsidiary authorised to issue, custody, convert, and process payments in U.S. dollar-denominated reserve-backed stablecoins. The approval is preliminary; the OCC retains the right to rescind it if developments before opening warrant that action.
The chartering is governed by the National Bank Act (12 U.S.C. § 1 et seq.) and the GENIUS Act (12 U.S.C. § 5901 et seq.). Congress enacted the GENIUS Act in 2025 as the primary U.S. federal stablecoin statute. The OCC's decision references OCC Conditional Approval No. 1362, dated January 29, 2026, as the controlling prior approval in this charter class. Conditions address capital adequacy, board composition, stablecoin reserve management, and compliance with applicable GENIUS Act requirements.
Stablecoin issuers, payment companies, and digital asset businesses evaluating a federal bank charter now have a confirmed OCC precedent. The Augustus Bank approval establishes that the OCC will grant a national bank charter where the primary activity is stablecoin issuance, provided reserve management, governance, and capital conditions are met. Charter applicants must demonstrate a compliant reserve structure and adequate Board oversight before receiving final approval.
The preliminary conditional approval does not guarantee final charter approval. The OCC may rescind or modify conditions before the bank opens. Charter applicants must also satisfy the GENIUS Act permissible payment stablecoin requirements and should monitor the OCC's proposed rulemaking under Bulletin 2026-3 for implementing standards.
Licentium advises digital asset businesses on U.S. federal and state charter strategy, stablecoin regulatory compliance, and GENIUS Act readiness. We assist clients with OCC pre-filing engagement and charter application structuring through our U.S. regulatory partner network. Work we undertake includes stablecoin compliance programs, OCC charter advisory, GENIUS Act analysis, and digital asset licensing support.