Circle Seeks National Trust Bank Charter for USDC Infrastructure

Circle Internet Group, the issuer of the USDC stablecoin, has formally submitted an application to the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank named First National Digital Currency Bank, N.A. This move is aimed at bolstering the infrastructure supporting USDC, the largest regulated payment stablecoin globally. The proposed institution would be a federally regulated trust bank tasked with managing the USDC Reserve for Circle's U.S. issuer and providing digital asset custody services to institutional clients.

This strategic initiative aligns with the anticipated regulatory requirements under the proposed GENIUS Act, which seeks to integrate digital assets more fully into the U.S. financial system. Unlike traditional banks, the new trust bank would not accept deposits or offer loans but would focus on custody and reserve management. Circle’s CEO Jeremy Allaire highlighted that this move represents a significant milestone toward building a transparent, efficient, and accessible internet financial system. The initiative also aims to support the resilience and wider adoption of the U.S. dollar through regulated stablecoins.

Currently, Circle’s USDC reserves are managed by BlackRock and BNY Mellon. However, the formation of its own trust bank would allow Circle to take direct custody while maintaining partnerships with major banks for parts of its holdings. The bank would also focus on custody for tokenized stocks and bonds rather than volatile cryptocurrencies like Bitcoin or Ether. This development follows Circle’s recent blockbuster IPO, which valued the company at nearly $18 billion, and comes amid growing legislative momentum in the U.S. to regulate stablecoins with requirements for liquid asset backing and monthly reserve disclosures.

If approved, Circle would join Anchorage Digital as one of the few digital asset firms holding a national trust bank charter. This move is expected to enhance compliance and investor confidence in stablecoin infrastructure, further solidifying Circle's position as a leader in the stablecoin market. The approval of this application would empower Circle to bolster the infrastructure supporting USDC and offer digital asset custody services specifically designed for institutional clients, aligning with the expected requirements under the proposed GENIUS Act.

This initiative is part of Circle's broader effort to secure pivotal licenses across various jurisdictions. Previously, Circle received the first NYDFS BitLicense in 2015 and became the first global stablecoin issuer to comply with the EU's MiCA framework in 2024. Furthermore, Circle recently obtained in-principle approval from the Financial Services Regulatory Authority of the Abu Dhabi Global Market. This strategic move is part of Circle's broader effort to secure pivotal licenses across various jurisdictions, further enhancing its operational framework and preemptively adapting to emerging regulatory landscapes.