Interpretive Letter 1184: crypto custody, execution at customer direction, outsourcing to sub-custodians

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Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.

Washington, DC 20219

                                                                            Interpretive Letter #1184
                                                                                          May 2025
May 7, 2025

Subject: Clarification of Bank Authority Regarding Crypto-Asset Custody Services

Dear [              ],

This responds to your letter requesting the Office of the Comptroller of the Currency (“OCC”) to
confirm that national banks and federal savings associations (collectively, “banks”) may provide
and outsource cryptocurrency custody and execution services on behalf of customers.
Specifically, you request the OCC to confirm that banks may buy and sell assets held in custody
at the custody customer’s direction and are permitted to outsource bank-permissible crypto-asset
activities, including custody and execution services to third parties, subject to appropriate third-
party risk management practices.

The OCC recently issued Interpretive Letter 1183, which reaffirmed Interpretive Letter 1170.
Interpretive Letter 1170 addressed the authority of banks to provide crypto-asset custody
services. The letter concluded that banks may provide crypto-asset custody services in a
fiduciary or non-fiduciary capacity under applicable statutory authority. 1 Providing crypto-asset
custody services is a modern form of traditional bank custody activities. 2 The letter
acknowledged that banks may use sub-custodians for crypto-asset custody and provided
examples of the types of services that banks may offer as custodians. Specifically, footnote 39 of
Interpretive Letter 1170 stated:

         The services national banks may provide in relation to the cryptocurrency they are
         custodying may include services such as facilitating the customer’s cryptocurrency
         and fiat currency exchange transactions, transaction settlement, trade execution,
         [recordkeeping], valuation, tax services, reporting, or other appropriate services. A
         bank acting as custodian may engage a sub-custodian for cryptocurrency it holds
         on behalf of customers and should develop processes to ensure that the sub-

1
  See OCC Interpretive Letter 1170. See also 12 U.S.C. 24(Seventh); 12 U.S.C 92a; 12 U.S.C 1464.
2
  See Interpretive Letter 1170. See generally M & M Leasing Corp. v. Seattle First Nat. Bank, 563 F.2d 1377, 1382
(9th Cir. 1977) (“the powers of national banks must be construed so as to permit the use of new ways of conducting
the very old business of banking.”).
         custodian’s operations have proper internal controls to protect the customer’s
         cryptocurrency.

Consistent with that language, a bank may buy and sell assets held in custody on a customer’s
behalf at the direction of the customer and in a manner consistent with the customer agreement
and applicable law. The cryptocurrency and fiat currency exchange and trade execution services
described above 3 encompass these activities. Similarly, a bank may use a sub-custodian to
provide custody services, including the services described above, 4 subject to appropriate third-
party risk management practices. If the bank acts in a fiduciary capacity, the bank must comply
with 12 C.F.R. part 9 or 150, as applicable. 5 As with any activity, the bank must conduct crypto-
asset custody activities, including via a sub-custodian, in a safe and sound manner and in
compliance with applicable law.

I trust this is responsive to your inquiry.

Sincerely,

/s/

Rodney E. Hood
Acting Comptroller of the Currency
Office of the Comptroller of the Currency

3
  See footnote 39 of Interpretive Letter 1170 noted above.
4
  See id.
5
  Twelve C.F.R. part 9 applies to national banks engaged in fiduciary activities. Twelve C.F.R. part 150 applies to
federal savings associations engaged in fiduciary activities. Twelve C.F.R. 9.13, 150.230, 150.240, 150.245, and
150.250 specifically address the custody and control of assets held in a fiduciary capacity.

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