Circle Seeks National Trust Bank Charter for USDC Reserves

Circle, a prominent player in the digital asset space, has taken a significant step by applying for a national trust bank charter with the U.S. Office of the Comptroller of the Currency (OCC). If approved, the new entity, named First National Digital Currency Bank, N.A., will allow Circle to directly manage its stablecoin reserves and provide custody services for tokenized assets. This move comes on the heels of Circle's recent public debut, which boosted its valuation to nearly $18 billion, and aligns with the increasing momentum in Congress around stablecoin legislation.

The proposed trust bank will not offer traditional banking services such as taking deposits or issuing loans. Instead, it will focus on managing Circle's USDC reserves and providing custody for tokenized assets, including stocks and bonds. This initiative reflects Circle's ongoing efforts to enhance transparency and governance standards in the digital asset space. Currently, Circle stores its reserves at major financial institutions and uses external partners for asset management. The trust bank status would enable Circle to bring some of that custody in-house while retaining these relationships.

Circle's application for a trust bank charter comes at a time when Congress is working to finalize a stablecoin bill that mandates monthly reserve disclosures and strict backing by liquid assets. The Senate passed the bill earlier in June, and the House is expected to vote this summer. If enacted, the new law could unlock broader adoption of stablecoins in retail and institutional settings. Circle's trust bank status would position the company to respond swiftly to these regulatory requirements and attract long-term institutional confidence.

Circle's CEO, Jeremy Allaire, stated that the goal is to move beyond the early adoption phase of digital finance. Becoming a public company and applying for a national trust charter are steps designed to achieve this. If successful, Circle may become the second digital asset firm with a U.S. trust bank license, following Anchorage Digital. This development could reshape how institutions engage with tokenized finance and further solidify Circle's position in the digital asset ecosystem.