Interactive Brokers Seeks National Trust Bank Charter Amid Fintech Licensing Wave

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Interactive Brokers Targets Federal Trust Bank Status

Interactive Brokers (NASDAQ: IBKR) has applied to the Office of the Comptroller of the Currency (OCC) for a national trust bank charter, placing it among a growing group of financial technology and payments firms in the United States pursuing banking licenses, including PayPal and Crypto.com.

The brokerage, best known for its retail trading platform, filed the application on December 20. If regulators sign off, the newly formed entity – to be called Interactive National Trust Bank – would focus on offering custodial services and securities lending solutions to mutual funds and exchange-traded funds.

A primary advantage of securing a national bank charter is the ability to operate under a single federal regulator, the OCC, rather than acquiring and maintaining individual money transmitter or payment licenses in all 50 states. National banks can conduct activities across state borders without seeking approval from each jurisdiction, which significantly streamlines compliance obligations.

A company representative confirmed the OCC filing to Bloomberg but did not share further information regarding the expected timeline or broader strategic aims of the initiative.

Growing Client Base and Expanded Market Access

The application coincides with ongoing growth in Interactive Brokers’ customer numbers and product reach. The firm reported that its client base has surpassed 4.31 million, a 30% increase compared with the same period a year earlier. In parallel, the brokerage has expanded its global access by introducing trading in UAE-listed equities.

While Interactive Brokers is broadening its footprint, it is also stepping into a highly competitive arena for bank charters.

Fintech Firms Crowd Into US Banking License Pipeline

According to Klaros Group, a consulting firm that advises companies on navigating the licensing landscape, more than 30 applicants have sought US bank status so far this year.

PayPal submitted its application earlier this month, with a focus on US retail and small business lending. In the same week, online payments company Mercury Technologies filed its own request for a banking license.

This momentum highlights a broader industry shift in which fintechs attempt to bring banking functions in-house instead of relying on external partner banks for core services.

Several well-known firms have already moved in this direction. Circle submitted an application in July to become a US national trust bank following its IPO, and Ripple lodged a similar filing just days later. Crypto.com joined the list of applicants in October.

International Licensing Moves Mirror US Activity

The pursuit of licenses is not confined to the United States. Revolut obtained a banking license in Mexico in October, although its efforts to secure a full UK banking license remain paused due to concerns regarding global risk controls.

Wise is evaluating both a UK banking license and a US trust bank charter to enable direct dollar settlements.

Overview of Key Applicants and Focus Areas

Regulatory Scrutiny and Operational Implications

The OCC review process for a national trust bank charter can extend over several months or longer. During this period, regulators closely examine capital adequacy, compliance frameworks, and the capabilities of management teams. While the charter gives firms the ability to operate across state lines, it also subjects them to rigorous supervisory standards.

Interactive Brokers already performs custody for client securities through its current platform. Obtaining a trust bank charter would allow the firm to institutionalize and broaden these services for asset managers such as mutual funds and exchange-traded funds.