Interactive Brokers (NASDAQ: IBKR) has filed an application with the Office of the Comptroller of the Currency for a national trust bank charter, joining dozens of fintech companies pursuing banking licenses in the United States, including PayPal and Crypto.com.

Interactive Brokers Applies for US National Trust Bank Charter

The brokerage, known primarily for its retail trading platform, submitted the application on December 20. If approved, the proposed Interactive National Trust Bank would offer custodial and securities lending services to mutual funds and exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term-traded funds.

The biggest benefit is operating under a single federal regulator (the OCC) rather than obtaining separate money transmitter or payment licenses in all 50 states. National banks can operate across state lines without needing permission from each state, which dramatically simplifies compliance

A company spokesperson confirmed the application to Bloomberg but declined to provide additional details about the timing or strategy behind the move.

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The move comes as the company reports an increase in its client base to more than 4.31 million, representing a 30% year-on-year jump. At the same time, it has recently added access to UAE-listed stocks, expanding its global trading offering.

When it comes to banking licenses, however, Interactive Brokers is entering a crowded field.

Applications Surge Past 30 This Year

More than 30 companies have applied to become banks in the US this year, according to Klaros Group, a consulting firm that helps companies navigate the licensing process.

PayPal filed its application earlier this month, targeting US retail and small business lending, while online payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term processor Mercury Technologies submitted its own paperwork the same week.

The rush reflects a broader trend of fintech firms seeking to bring banking operations in-house rather than relying on partner banks.

Several major players have already moved down this path. Circle applied to become a US national trust bank in July following its IPO, while Ripple filed a similar application days later. Crypto.com joined the queue in October.

Outside the US, the pattern continues. Revolut secured a banking license in Mexico in October, though its full UK banking license remains on hold over concerns about global risk controls.

Wise is exploring both a UK banking license and US trust bank approval for direct dollar settlements.

Regulatory Hurdles Ahead

The OCC application process can take months or longer, with regulators scrutinizing capital requirements, compliance systems and management teams. National trust bank charters allow firms to operate across state lines but come with strict oversight requirements.

Interactive Brokers already handles custody for client securities through its existing platform, but a bank charter would enable it to formalize and expand those services to institutional clients like mutual funds and ETFs.

The company has not disclosed a timeline for when it expects the OCC to rule on its application.