Circle Seeks Federal Oversight for Digital Currency Bank

Circle Internet Group Inc. has taken a significant step towards integrating crypto infrastructure into the core of U.S. financial regulation by applying to the Office of the Comptroller of the Currency (OCC) to establish a federally regulated trust bank named First National Digital Currency Bank, N.A. This move signals a major advancement in the institutional integration of digital dollars into the regulated U.S. financial ecosystem. If approved, the bank would operate under federal oversight, manage the USDC Reserve, and offer digital asset custody services to institutional clients.

The proposed charter aligns with the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a bill introduced to regulate payment stablecoins through federal licensing, reserve mandates, and compliance requirements. Circle CEO Jeremy Allaire highlighted the importance of this move, stating that it marks a significant milestone in building an internet financial system that is transparent, efficient, and accessible. Allaire further emphasized that by applying for a national trust charter, Circle is taking proactive steps to strengthen its USDC infrastructure and align with emerging U.S. regulations for the issuance and operation of dollar-denominated payment stablecoins. This, according to Allaire, can enhance the reach and resilience of the U.S. dollar and support the development of crucial, market-neutral infrastructure for leading institutions.

Circle has maintained a proactive regulatory approach over the past decade. It was the first recipient of New York’s Bitlicense in 2015 and the initial global issuer to meet the European Union’s MiCA rules in 2024. The company also received in-principle approval in April 2025 to operate in Abu Dhabi. Circle officially went public on the New York Stock Exchange on June 5, 2025, under the ticker “CRCL.” Its IPO was priced at $31 per share, and since then, shares have surged to over $180, reflecting strong investor confidence in the firm’s role as a stablecoin market leader.

The proposed bank would be only the second crypto company to receive a national trust charter, following Anchorage, which was conditionally cleared by regulators in 2021. This approval would grant Circle the legal authority to custody its own reserves directly, eliminating the need for intermediaries. The reserves backing Circle’s USDC, the second-largest stablecoin by market value, include cash and short-dated U.S. Treasuries, as per the company’s latest attestation from June 26.

Circle's push for a national bank charter coincides with a period of heightened market optimism. Since its IPO, the firm’s shares have surged more than fivefold, jumping from its $31 offering price to as high as $298.99. This surge was fueled by the U.S. Senate’s passage of stablecoin legislation on June 17, which has sparked a wave of activity across the industry. Major players have announced further stablecoin efforts, while retail giants are reportedly exploring the launch of their own stablecoins.

Despite the mixed analyst sentiment, Circle's application for a national trust bank charter underscores its commitment to navigating the complex regulatory landscape. The company has a proven track record in this area, having obtained a BitLicense from New York in 2015 and holding money transmitter licenses across multiple states. The national charter, if approved, would further solidify Circle's regulatory standing, providing deeper access to institutional money and reducing reliance on third-party custodians.

Circle's journey towards establishing First National Digital Currency Bank, N.A. is a testament to its ambition and strategic foresight. By seeking federal oversight and regulatory approval, Circle aims to enhance its institutional compatibility and strengthen its position in the rapidly evolving digital currency landscape. The outcome of this application will be closely watched by industry stakeholders, as it could set a precedent for other crypto firms seeking similar regulatory recognition.