Banks Can Now Own Crypto To Pay Blockchain Fees

• The OCC authorized national banks to hold crypto on their balance sheets to pay “gas” fees.
• This “principal” holding status removes a key barrier, allowing banks to process on-chain payments.
• The move positions banks to compete with stablecoins, which are eroding traditional deposit bases.

U.S. regulators have cleared a final operational hurdle for banks entering the blockchain space. The Office of the Comptroller of the Currency (OCC) confirmed on Tuesday that national banks can legally hold cryptocurrency. This authority is strictly limited to assets held as “principal” to pay for blockchain network fees.

The ‘Gas’ Rule: Why Banks Need to Hold Crypto as Principal

The new guidance, published in Interpretive Letter No. 1186, addresses a critical infrastructure problem. To process transactions on public blockchains, an operator must pay “gas” fees using the network’s native token (like ETH or SOL). Until now, it was unclear if banks could legally own these volatile assets on their own books.

Related: OCC Expands Crypto Activities for Banks, Allowing Buy and Sell of Assets

The OCC ruling clarifies that banks can hold the specific amounts necessary for these payments. This allows institutions to run blockchain nodes and streamline settlement. The guidance emphasizes that these holdings must be “incidental” to banking activities, not speculative investments.

Banks have intensified calls for this clarity. Stablecoin networks are rapidly capturing transaction volume that once routed through legacy ACH and card systems. Treasury officials have warned these stablecoin rails threaten core deposit balances. Consequently, banks are rushing to integrate blockchain settlement to retain corporate clients.

Clearing the Path for Tokenized Settlement

The OCC’s guidance arrives as U.S. banks confront a rapid shift in deposit behavior. Stablecoin volumes on major networks have surged. This has prompted corporate treasurers to bypass traditional settlement systems in favor of faster, programmable transfers. Banks risk losing transaction revenue unless they adopt compatible on-chain infrastructure.

The new guidance provides regulatory cover for blockchain settlement. Holding network fees as principal allows banks to test tokenized workflows. They can now process transactions without assuming broader balance-sheet exposure to volatile assets.

By authorizing this specific type of ownership, the OCC removes a key operational bottleneck. This bottleneck had limited banks’ ability to transact on public chains. Institutions now face rising expectations to integrate tokenized settlement in the coming year.

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