Circle Seeks National Banking License After 167% Share Surge

Circle, the company behind the USDC stablecoin, has submitted an application for a national banking license. This move is significant as it brings the crypto firm closer to traditional finance, allowing it to serve as a custodian for its own reserves and hold digital assets on behalf of institutional clients. The application comes shortly after Circle’s successful public debut, where shares surged 167% on the first day of trading, priced at $31, well above the indicated range. The offering was 25 times oversubscribed, drawing heavy demand from both crypto-native and traditional investors.

If granted, the license from the U.S. Office of the Comptroller of the Currency (OCC) would establish Circle’s new entity as “First National Digital Currency Bank, N.A.” This license allows for custody and crypto services but does not permit deposit-taking or lending like a traditional bank. Circle has long been interested in obtaining a banking charter, though it previously denied reports of pursuing other types of licenses. A federal license would place Circle directly under the OCC’s supervision, an unusual position for a crypto firm that could put it ahead of rivals in regulatory preparedness.

Circle’s chief strategy officer, Dante Disparte, stated in May that the company is not seeking to become a federally chartered bank or to acquire a deposit-taking institution. Instead, Circle is preparing to align with future regulatory requirements for payment stablecoins, which could involve registering under a federal or state trust charter or obtaining a nonbank license. This statement follows a report that named Circle among several crypto firms exploring banking licenses. Of those companies, only Coinbase confirmed it is weighing such a move.

Circle’s CEO, Jeremy Allaire, previously expressed interest in a bank charter, stating in 2022 that the company was already in talks with regulators as part of its efforts to secure a charter. Paxos, another stablecoin issuer, received preliminary conditional approval for a federal bank charter from the OCC in 2021. Earlier this week, analysts said Circle’s USDC is on track to become the leading regulated stablecoin under the proposed legislation, calling it a potential “regulatory headstart.” USDC currently holds a market cap of $61.5 billion, making it the second-largest stablecoin after Tether.

Circle’s application to the OCC builds on the company’s global track record of seeking key licenses and authorizations in multiple jurisdictions. In 2015, Circle secured the first NYDFS BitLicense and remains committed to working with NYDFS. In 2024, Circle became the first global stablecoin issuer to comply with the European Union's landmark Markets in Crypto-Assets (MiCA) regulatory framework. Most recently, in April of 2025, Circle received in-principle approval from the Financial Services Regulatory Authority of the Abu Dhabi Global Market to operate as a money services provider.

Circle Internet Group, Inc. is a global financial technology firm that enables businesses of all sizes to harness the power of digital currencies and public blockchains for payments, commerce, and financial applications worldwide. Circle is building the world’s largest, most-widely used, stablecoin network, and issues, through its regulated affiliates, USDC and EURC stablecoins. Circle provides a comprehensive suite of financial and technology services that empower enterprises and developers to integrate stablecoins and blockchains into their products, services, and business operations.