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Zerohash Fails To Secure U.S. Trust Bank Charter

Zerohash has fallen short in its quest to secure a U.S. Trust Bank Charter.

Privately held Zerohash is a Chicago-based financial technology company founded in 2017 that provides infrastructure for trading in digital assets such as Bitcoin (CRYPTO: $BTC).

Zerohash allows banks, brokers, and fintech platforms to integrate crypto trading, stablecoin payments, staking, and asset tokenization without having to build their own blockchain systems.

The firm is best known as providing the backend operations for investment bank Morgan Stanley's (NYSE: $MS) E*Trade brokerage and app.

Zerohash had hoped to join dozens of other firms that have been granted U.S. trust bank charters by the Office of the Comptroller of the Currency.

But the banking regulator returned Zerohash’s application. That typically means the application was deficient in some respect and opens the door for the fintech to reapply for a charter.

“The return of the application is an administrative process that allows us to refile this month,” said Zerohash in a statement issued to the media.

The company added that it looks forward “to swift review of the resubmission.”

A trust bank charter is a specialized financial business license that authorizes an institution to provide fiduciary, asset custody, administration, and settlement services.

Unlike full-service commercial banks, trust banks do not take retail deposits or issue consumer loans.

Zerohash is privately held and its stock does not trade on a public exchange.