IBKR Seeks National Trust Bank Charter: What it Means & Why it Matters

Interactive Brokers IBKR, a well-known global online trading platform, is seeking a national trust bank charter from the Office of the Comptroller of the Currency (OCC). This was published on MSN, citing Bloomberg.  

A national trust bank charter enables an institution to offer trust, custody and fiduciary services under federal banking supervision. Unlike a traditional bank license, it does not permit broad deposit-taking or lending activities. Hence, for IBKR, whose business model centers on brokerage, trading and asset custody, this structure is a natural fit.

The move will enable Interactive Brokers to bring certain custody functions in-house, lower reliance on third-party banks and simplify its regulatory and operational framework. Over time, this is expected to translate into modest cost efficiencies and margin improvement, rather than a sharp increase in revenues. The charter also enhances the company’s appeal to institutional clients, such as hedge funds, RIAs and family offices that value federally regulated fiduciary-grade custody.

The near-term impact on earnings is likely to be neutral, as any benefits would be offset by setup and compliance costs. Over the medium term, improved operating leverage and more stable, fee-based revenues will likely enhance the quality of earnings. The trust bank structure provides strategic optionality, allowing IBKR to expand trust-adjacent services as market demand evolves over the longer term.

This is not a transformational growth catalyst, but a strategic infrastructure upgrade. By aligning its regulatory framework more closely with its core business, Interactive Broker is positioning itself for greater efficiency, durability and flexibility.

Where Do IBKR’s Peers Stand?

Coinbase Global Inc. COIN has applied for a charter with the Office of the Comptroller of the Currency, which will help grow its crypto custody business. If approved, the company can offer custody and related banking services across the nation. Coinbase can also pursue payments and related services, fueling higher institutional adoption. Greg Tusar, vice president, Institutional Product, stated, “Coinbase isn't pursuing the license to become a bank. It has no intention of doing so.”

Charles Schwab SCHW does not operate under a federal national trust bank charter. Instead, it provides trust and fiduciary services through state-chartered entities, including Charles Schwab Trust Bank, an FDIC-insured state member bank, and affiliated trust companies. Schwab also operates Charles Schwab Bank, SSB, which handles traditional deposit and lending activities.

IBKR’s Price Performance, Valuation & Estimate Analysis

Shares of Interactive Brokers have rallied 27.2% in the past six months, outperforming the industry’s growth of 21.7%.

From a valuation standpoint, IBKR trades at a forward 12-month price-to-earnings (P/E) of 28.87X, well above the industry average of 15.09X.

The Zacks Consensus Estimate for Interactive Brokers’ 2025 and 2026 earnings indicates year-over-year growth of 17.1% and 8.1%, respectively. Over the past two months, earnings estimates for both years have been revised upward.

Currently, Interactive Brokers carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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