Circle Seeks National Trust Bank Charter for USDC Stablecoin

Circle, a leading stablecoin issuer, has announced its intention to establish a national trust bank, marking a significant development in its regulatory and operational strategy. The company, which recently completed a successful Initial Public Offering (IPO), has applied to the Office of the Comptroller of the Currency (OCC) for a national trust bank charter. This move aims to create a new entity, First National Digital Currency Bank, N.A., which would oversee the reserves backing Circle's USDC stablecoin, the second-largest stablecoin by market cap with over $61 billion worth of dollar-pegged tokens in circulation.

The application for a national trust charter is a proactive step by Circle to strengthen its USDC infrastructure and align with emerging U.S. regulations for stablecoins. According to Circle, this charter would help USDC comply with the GENIUS Act, a recently passed Senate legislation aimed at providing a regulatory framework for stablecoins. The establishment of a national trust bank would also enable Circle to offer a broader range of financial services, including custody services to institutional customers, enhancing its competitive position in the financial technology sector.

Circle's co-founder, Chairman, and CEO Jeremy Allaire emphasized the significance of this move, stating that it marks a milestone in the company's goal to build an internet financial system that is transparent, efficient, and accessible. By seeking a federal trust charter, Circle aims to align with the regulatory framework of traditional financial institutions, ensuring greater stability and security for its users. This strategic decision underscores Circle's commitment to regulatory compliance and operational excellence, positioning the company to explore new opportunities in the financial services sector and solidify its leadership in the stablecoin market.