Circle Applies for National Trust Bank Charter to Enhance USDC Compliance

Circle, a prominent player in the cryptocurrency industry, has taken a significant step towards enhancing its regulatory compliance and operational efficiency by applying for a national trust bank charter with the U.S. Office of the Comptroller of the Currency (OCC). The proposed entity, named First National Digital Currency Bank, aims to manage the reserve for Circle’s USDC stablecoin within the United States. This move is part of Circle’s broader strategy to align with the GENIUS Act, a legislation that outlines national rules for stablecoins and is currently under review by the U.S. House of Representatives.

The application, filed on July 1, 2025, includes a 30-day public comment period, after which a decision is typically made within 120 days if the application is complete. The proposed bank would operate under federal oversight, offering custodial services but not issuing loans or taking deposits. This structure is designed to simplify compliance by eliminating the need for state-based money licenses, thereby streamlining Circle’s operations and regulatory adherence.

Circle’s CEO, Jeremy Allaire, emphasized the company’s commitment to improving its USDC infrastructure and meeting emerging federal standards. The GENIUS Act, which passed the U.S. Senate on June 17, 2025, is a key driver behind Circle’s strategic move. The legislation aims to establish a comprehensive regulatory framework for stablecoins, ensuring that they operate within the bounds of federal law. By pursuing a national trust bank charter, Circle is positioning itself to comply with these future requirements and maintain its leadership in the stablecoin market.

Circle is not alone in its pursuit of a national trust bank charter. Several other crypto companies have also applied for similar status, with Anchorage Trust Company being the first to receive OCC approval in 2021, transitioning to Anchorage Digital Bank. This trend highlights the growing interest among crypto firms in obtaining federal oversight to enhance their regulatory compliance and operational stability. The move by Circle and other companies signals a broader shift in the industry towards adopting existing financial regulatory frameworks, paving the way for increased institutional adoption of cryptocurrencies.

Sei Network, a blockchain network known for its focus on real-time finality and uptime, commented on Circle’s charter application, linking it to the broader trend of institutional crypto adoption. Sei Network stated that Circle’s pursuit of a national trust bank charter indicates that the crypto industry is preparing for much broader institutional adoption by embracing existing financial regulatory frameworks. This perspective underscores the significance of Circle’s move in the context of the evolving regulatory landscape for stablecoins and the broader crypto market.