Circle Applies for US Trust Bank Charter to Bolster USDC Oversight and Compliance
Stablecoin issuer Circle has officially applied to establish a federally regulated national trust bank in the United States. If approved by the Office of the Comptroller of the Currency (OCC), the proposed institution — named First National Digital Currency Bank — would play a key role in managing the USDC reserve and offering digital asset custody services to institutional clients.
A Strategic Move Toward Regulatory Alignment
Circle stated that this initiative aims to enhance the infrastructure that supports the issuance and circulation of USDC, its dollar-pegged stablecoin, currently valued at $0.9997. The trust bank would not accept cash deposits or issue loans but would offer nationwide custodial and asset management services, freeing Circle from the burden of acquiring state-by-state money transmitter licenses.
“This is a proactive step to strengthen our USDC infrastructure and align with emerging U.S. regulations,” said Circle CEO Jeremy Allaire.
GENIUS Act Compliance
The move is also a strategic response to anticipated regulatory requirements. The trust charter would support compliance with the proposed GENIUS Act, which passed the Senate on June 17 and is currently under review in the House of Representatives. If enacted, the law would define clear federal guidelines for the issuance and governance of dollar-denominated stablecoins.
OCC Review Process
Circle’s application to the OCC now enters a 30-day public comment period, followed by a decision window of up to 120 days after the application is deemed complete. If successful, Circle would join Anchorage Digital Bank, which became the first crypto firm to receive a national trust bank license in January 2021.
Other Firms Join the Race for Trust Bank Status
Circle is not alone in seeking national banking capabilities. According to Eleanor Terrett, host of the Crypto in America podcast, multiple crypto firms — including the digital currency division of Fidelity — are currently applying for national trust bank charters.
Circle has reportedly been considering this move since at least 2022, and its name appeared in an April 2024 Wall Street Journal report outlining crypto firms pursuing banking licenses.
Stock Reaction
Shares of Circle Internet Group (CRCL) remained relatively flat during the latest trading session, ticking up 0.48% to $181, before slipping 1.3% to $178 in after-hours trading. The stock had previously made headlines for its 167% surge on its NYSE debut on June 5, signaling strong investor interest in regulated crypto-native financial services.
Circle’s pursuit of a national trust bank charter marks a pivotal moment for the company and the broader stablecoin industry, signaling that key players are moving rapidly to align with forthcoming federal regulation and establish a more secure and scalable foundation for digital finance in the U.S.
