ICBA told the Office of the Comptroller of the Currency that it strongly opposes Sony Bank’s application for a national trust bank charter for its proposed subsidiary, Connectia Trust, National Association.

Sony Bank proposes to use Connectia “to engage in certain specified activities involving cryptocurrency” to include “the issuance of dollar-pegged stablecoins and maintenance of corresponding reserve assets, the provision of non-fiduciary digital asset custody services, and the provision of asset management services as fiduciary to certain affiliates.”

In its letter, ICBA said the application approach appears designed by Sony Bank to receive the benefits of a U.S. bank charter without becoming subject to the full scope of U.S. bank regulations.