The Office of the Comptroller of the Currency (OCC) confirmed a policy that allows US banks to hold cryptocurrencies to pay blockchain gas fees.
The update gives institutions a clearer path to operate blockchain systems that require native tokens for transactions.
The OCC said the clarification supports banks that use approved blockchain functions for settlements and internal processes.
OCC confirms banks can hold crypto for gas fees
The OCC released Interpretive Letter 1186 and stated that national banks may pay network fees and hold crypto needed for future activity.
The agency explained that banks can keep assets like Bitcoin, Ethereum, XRP, or Solana when those tokens are supported by approved on-chain operations.
The letter also stated that banks can maintain small balances for “reasonably foreseeable” needs linked to blockchain processes.
Officials added that institutions must follow safe and sound practices when managing these assets.
The OCC used Ethereum as an example, noting that ETH is required to process transactions on the network.
The agency said users either maintain ETH accounts, use exchanges, or rely on third-party providers. It added that these steps create cost and risk because of complexity, asset price swings, and delayed settlement. The guidance lets banks avoid those risks by holding the tokens directly.
Paul Barron said the update marks a significant shift for institutions that want direct access to blockchain settlements. He noted that banks no longer need intermediaries to manage routine gas fees for approved operations. He explained that this change gives banks more control over timing, execution, and cost. He also said that the move simplifies planning for teams that rely on on-chain systems.
The OCC added that permissible activities must relate to functions allowed under existing banking law.
The agency stressed that banks must comply with all legal and supervisory requirements when using digital assets. It also stated that the update serves as a clarification, not a new rule. Banks may now prepare for expected blockchain transactions without special approvals.
Guidance expands support for blockchain adoption
The agency said institutions may hold crypto for testing internal platforms or systems developed by third-party providers.
This point expands the scope of early-stage blockchain adoption across the sector. The OCC noted that these testing reserves remain small but necessary for development and evaluation.
The update also reduces reliance on external services that previously handled gas payments for banks.
Regulators highlighted that the clarification aligns with ongoing efforts to define how traditional institutions approach digital assets.
Over the past year, the Federal Reserve withdrew earlier guidance that limited crypto involvement.
The OCC and the Fed also released a joint statement that outlined how rules apply when banks hold crypto for customers.
The OCC further clarified that banks can buy and sell crypto assets on customers’ behalf.
The bureau said it removed references to reputation risk from several handbooks. However, officials stressed that expectations for risk management remain unchanged.
The update now stands as a reference point for banks designing on-chain workflows and payment systems. It signals a more structured path for institutions exploring regulated blockchain operations.