Payments

The payments landscape for community banks is changing rapidly as traditional payments converge with new instant payment systems and emerging cryptocurrencies. It is critical for Community Banks to maintain awareness of developments in the payments space to assess new opportunities, mitigate risks, and ensure that their payment strategy aligns with overall business plans.

Payments News

OCC clarifies cryptoasset guidance

May 08, 2025

The OCC clarified permissible bank activities related to cryptoasset custody and execution services.

Details: In a new interpretive letter, the OCC said that banks:

  • May buy and sell assets held in custody at the customer’s direction.

  • Are permitted to outsource to third parties bank-permissible cryptoasset activities, including custody and execution services, subject to appropriate third-party risk management practices.

  • Must conduct cryptoasset custody activities, including via a sub-custodian, in a safe and sound manner and in compliance with applicable law.

Background: The OCC in March issued guidance for cryptoasset activities that rescinded previous guidance that said banks must “demonstrate, to the satisfaction of its supervisory office” that they could engage in permissible cryptoasset activities in a safe and sound manner.

ICBA View: With this statement, the OCC has signaled greater openness to banks partnering with other companies to offer crypto custodial services to their customers.