Interactive Brokers Seeks US National Trust Bank Charter Amid Fintech Banking Push

Interactive Brokers (NASDAQ: IBKR) has applied for a US national trust bank charter, becoming the latest financial services firm to pursue a banking license as fintech companies increasingly seek to consolidate regulatory oversight.

According to the filing, submitted to the Office of the Comptroller of the Currency (OCC) on December 20, the proposed entity—Interactive National Trust Bank—would focus on providing custodial and securities lending services for mutual funds and exchange-traded funds (ETFs). A company spokesperson confirmed the application to Bloomberg but declined to comment on the expected timeline or strategic rationale.

If approved, the charter would allow Interactive Brokers to operate under a single federal regulator rather than navigating separate state-level money transmitter or payment licenses. National trust banks can operate across state lines without requiring approval from individual states, a structure that significantly simplifies compliance obligations.

The application comes as Interactive Brokers reports continued growth in its business. The brokerage said its client base has risen to more than 4.31 million, marking a 30% increase year over year. The firm has also expanded its global reach, recently adding access to UAE-listed stocks, alongside earlier moves such as launching the Karta Visa card and expanding trading options in Taiwan.

However, Interactive Brokers is entering an increasingly crowded field. More than 30 companies have applied for US bank charters this year, according to consulting firm Klaros Group. Recent applicants include PayPal, which is targeting retail and small business lending, and Mercury Technologies, an online payments processor.

Other major fintech and crypto-related firms have also pursued similar paths. Circle and Ripple applied for US national trust bank charters earlier this year, while Crypto.com filed an application in October. Outside the US, Revolut secured a banking license in Mexico, and Wise is exploring banking approvals in both the UK and the US.

The OCC's review process can take months or longer, with regulators closely examining capital adequacy, compliance frameworks, and management structures. While Interactive Brokers already provides custody services through its existing platform, a national trust bank charter would allow the company to formalize and expand those services for institutional clients.

The company has not disclosed when it expects a decision from regulators.