Circle Seeks National Trust Bank Status for USDC Stablecoin

Circle, the company behind the USDC stablecoin, has submitted an application to the Office of the Comptroller of the Currency (OCC) to form a national trust bank. If approved, the institution would be known as the First National Digital Currency Bank and would operate as a federally regulated entity dedicated to overseeing the management of the USDC Reserve. The new bank would serve as the primary custodian and overseer of USDC reserves on behalf of Circle’s U.S. issuing entity, aiming to bring a higher level of regulatory oversight and institutional robustness to one of the world’s most widely used stablecoins. This move is designed to strengthen the foundation for USDC issuance and circulation, potentially setting new standards in the stablecoin market.

Circle’s CEO and co-founder, Jeremy Allaire, characterized the move as a bold leap toward creating a more transparent and accessible digital financial ecosystem. “Establishing a national digital currency trust bank of this kind marks a significant milestone in our goal to build an internet financial system that is transparent, efficient and accessible,” said Allaire. “By applying for a national trust charter, Circle is taking proactive steps to further strengthen our USDC infrastructure.” The OCC will now open a 30-day period for public comments on the application before moving toward a decision, typically issued within 120 days of receiving final documentation.

This application comes just weeks after Circle completed a major initial public offering (IPO) in the United States. Originally targeting a $7.2 billion valuation, the company exceeded expectations when its stock surged on debut, pushing its market capitalization to over $40.3 billion. The IPO success appears to have given Circle fresh momentum as it moves to cement its position as a fully compliant and transparent player in the stablecoin sector. Regulatory clarity is increasingly becoming a differentiating factor for digital asset companies, and Circle’s latest move could give it a competitive edge.

In addition to improving operational integrity, Circle’s bid for national trust bank status would also help ensure compliance with emerging legislation. The proposed GENIUS Act, which is designed to regulate stablecoin issuers in the U.S., has already passed the Senate and is awaiting review and voting in the House of Representatives. If passed into law, the act could impose new requirements on how stablecoins are managed, especially in terms of reserves and transparency. Circle believes that operating under a national banking charter would allow it to meet these standards more easily and position itself as a compliant and forward-thinking issuer.

While Circle’s announcement drew widespread attention, it is not the only crypto company seeking a national trust bank designation. Several firms, including Fidelity’s digital asset division, have submitted similar applications. This trend reflects a broader industry effort to align with federal regulators and gain legitimacy in the eyes of institutional investors and lawmakers. The first such license issued by the OCC went to Anchorage Trust Company in January 2021. It later became Anchorage Digital Bank, making it the first federally chartered crypto bank in the United States.

Circle’s application could mark a new chapter in the evolution of stablecoins and crypto-financial institutions. If approved, the trust bank could set a benchmark for transparency and compliance in the sector, especially as U.S. lawmakers intensify their scrutiny of digital assets. By voluntarily subjecting itself to the oversight of the OCC, Circle appears eager to distance itself from unregulated players and demonstrate long-term viability in a highly competitive space. With regulatory frameworks tightening and investor expectations evolving, this may not just be a milestone for Circle—it could represent the next step forward for the stablecoin industry as a whole.