JUST IN: US Banking Regulator Says Banks Can Hold Crypto To Pay Blockchain Network Fee
The U.S. Office of the Comptroller of the Currency (OCC) has officially authorized national banks to hold and use cryptocurrency for the purpose of paying blockchain network fees—marking one of the most significant regulatory shifts in the sector in years. The decision, issued through Interpretive Letter No. 1186, confirms that banks can maintain crypto assets on their balance sheets when those assets are necessary for “otherwise permissible” banking activities. This approval effectively removes a major operational barrier that has slowed banks’ ability to work directly with public blockchain networks such as Bitcoin and Ethereum, where network fees—commonly known as “gas fees”—are mandatory for processing transactions. Key Takeaways A Green Light for Holding and Spending Crypto The OCC stated that national banks may pay network fees on blockchain systems as part of providing lawful banking services. This includes custody operations, customer transactions, or any activity that relies on blockchain networks for settlement. To support these activities, the regulator now permits banks to hold crypto as principal, as long as the amount is limited to what the bank reasonably expects to need. This also extends to digital assets held for testing blockchain-based platforms, whether developed internally or sourced from vendors. According to Adam Cohen, the OCC’s senior deputy comptroller and chief counsel, the move helps banks avoid unnecessary risk: “Permitting the bank to engage in the proposed activities enables it merely to expand… pre-existing permissible activity without having to expend resources or expose itself to operational and counterparty risks associated with acquiring the necessary crypto-assets from a third party.” Why This Matters Banks interacting with blockchain networks face a structural challenge: you cannot send a transaction without the network’s native asset. For Ethereum, that means ETH; for Bitcoin, BTC. With today’s guidance, banks no longer need to rely on external liquidity providers to acquire these tokens every time they need to use the blockchain. The OCC described these activities as “incidental to the business of banking.” Historically, banks have held foreign currencies, banknotes, or shares in payment systems to conduct operations. The agency emphasized that crypto, in this context, is simply the modern equivalent of those tools. The letter notes that banks must keep their exposure minimal relative to capital levels and maintain strong controls for operational, liquidity, cybersecurity, market, and legal risks. Policy Shift Under New Leadership This guidance represents a major pivot from the more cautious stance taken under the Biden administration. During that period, the OCC required national banks to seek explicit approval before engaging in nearly any crypto-related activity. Other agencies, including the FDIC, discouraged banks from interacting with public blockchains due to concerns that transactions could not be censored or halted if needed. The shift began earlier this year when the OCC rescinded the Biden-era restrictions and reaffirmed that banks could provide custody services, interact with stablecoins, and participate more broadly in blockchain infrastructure. Today’s announcement comes under Comptroller Jonathan Gould, a Trump appointee who was confirmed in July 2025. Under his leadership, the agency has sought to normalize banks’ participation in digital asset markets. Expanding the Role of Banks in Crypto The OCC’s stance positions U.S. banks to become more active participants in the blockchain economy. In recent months, the regulator also issued Interpretive Letter 1184, which allowed national banks to offer crypto custody and trading services, outsource crypto operations to approved third parties, and provide related functions such as compliance and recordkeeping. The latest guidance goes a step further by allowing banks to directly hold and spend crypto assets for their operational needs. This could accelerate adoption by reducing friction, lowering reliance on external crypto exchanges, and enabling banks to integrate blockchain rails into traditional financial services. With new stablecoin regulations still being drafted under the GENIUS Act, the OCC’s move signals that core crypto operations involving public blockchains are already acceptable for regulated institutions—as long as they are tied to lawful banking activities and conducted under strict risk management. What Comes Next Banks exploring blockchain-based settlement, tokenized assets, or stablecoin-related services now have clearer regulatory backing to proceed. The guidance also strengthens the infrastructure needed for banks to participate in on-chain transactions without unnecessary delays or third-party exposure. As more institutions adopt blockchain technology, the OCC’s interpretive letter may serve as a foundation for a broader integration of crypto into mainstream financial services. For now, the message from the country’s top banking regulator is clear: holding and using crypto for operational fees is not only allowed—it’s a natural part of modern banking.
UPDATE: The Stablecoin Issuer Tether Is Backing Ledn, Which Offers Bitcoin-Collateralized Loans
Tether, the world’s largest stablecoin issuer and a growing force in digital finance, has made a strategic investment in Ledn, a leading provider of bitcoin-collateralized consumer loans. The move signals a renewed push to expand credit access for crypto holders while reinforcing bitcoin’s role as a core financial asset. According to Tether, the partnership is designed to strengthen global access to credit without forcing individuals or businesses to sell their digital assets. Paolo Ardoino, CEO of Tether, said the collaboration “strengthens self-custody and financial resilience,” highlighting the company’s broader mission to build real-world financial infrastructure using digital asset rails. A Breakout Year for Ledn Ledn has emerged as one of the most successful survivors of the 2022 crypto lending wipeout, which saw major firms such as Celsius, BlockFi, Voyager and Genesis collapse. By narrowing its focus to a bitcoin-only model and improving its risk and custody systems, the Cayman Islands–registered lender has rebuilt momentum in record fashion. The firm has originated more than $2.8 billion in bitcoin-backed loans since launch. Its performance in 2025 has been its strongest on record, with over $1 billion in loans issued year-to-date and $392 million in Q3 alone, nearly matching its entire loan volume for 2024. Ledn now reports more than $100 million in annual recurring revenue (ARR), demonstrating surging demand for secure, asset-backed lending products. The company attributes this growth to the increasing number of bitcoin holders seeking liquidity without giving up their long-term positions. In a statement, Adam Reeds, co-founder and CEO of Ledn, said: “As Ledn’s loan book is on track to nearly triple from our 2024 levels, it validates our decision to go all-in on bitcoin. We expect demand for bitcoin financial services to continue soaring, and this collaboration with Tether ensures that Ledn remains well-positioned to lead as the market continues to evolve and grow.” A Growing Market for Crypto-Backed Credit The broader crypto-backed lending market is expected to expand sharply over the next decade. According to Data Intelo’s market outlook, the sector is projected to grow from $7.8 billion in 2024 to more than $60 billion by 2033, reflecting a major shift toward alternative credit systems that allow borrowers to access funds without selling their digital assets. As these markets mature, firms with robust custody, risk management, and liquidation infrastructures—like Ledn—are expected to become increasingly significant players. Bitcoin-secured loans give users access to liquidity for short-term needs while preserving long-term exposure. For many, this reduces tax exposure, avoids market timing risk, and allows their holdings to remain in self-custody—an approach that aligns strongly with Tether’s stated philosophy. Tether’s Expanding Investment Footprint Tether’s backing of Ledn is the latest in a series of strategic moves that extend far beyond stablecoins. In recent months, Tether has: The company’s growing portfolio reflects its evolution from stablecoin issuer to a diversified global tech and finance powerhouse. Strengthening Bitcoin’s Role in Modern Finance The partnership with Ledn is aimed at expanding real-world use cases for digital assets. By enabling credit lines secured by bitcoin rather than requiring its sale, both companies aim to support long-term financial empowerment and the preservation of wealth. Tether CEO Paolo Ardoino emphasized this mission, saying: “Our investment reflects Tether’s belief that financial innovation should empower people. Together with Ledn, we are expanding access to credit without requiring individuals to sell their digital assets.” Ledn’s platform offers savings products as well, including high-interest accounts supporting USDC, USDT, and Bitcoin. Combined with its consumer and institutional lending services, the firm has positioned itself as an end-to-end crypto finance provider. What This Means Going Forward The undisclosed investment amount suggests the deal may be part of a long-term strategic collaboration rather than a conventional funding round. While neither company has revealed the financial terms, Ledn has confirmed it intends to use the capital to launch new products, enter additional markets, and integrate Tether’s assets across its platform. The partnership also highlights a broader industry trend: the rise of lending systems built on decentralized assets but structured with institutional-grade risk controls. As demand for bitcoin-collateralized credit accelerates, both Tether and Ledn appear poised to play leading roles in shaping the next era of crypto-native financial services.