Circle Seeks OCC Approval for National Digital Currency Bank

Circle, a prominent global financial technology company and leader in the stablecoin market, has submitted an application to the Office of the Comptroller of the Currency (OCC) to establish a national trust bank named First National Digital Currency Bank, N.A. This strategic move is aimed at bolstering the infrastructure that supports the issuance and circulation of USDC, the world’s largest regulated payment stablecoin. If approved, the bank would operate as a federally regulated trust institution under OCC oversight, managing the USDC Reserve on behalf of Circle’s U.S. issuer and offering digital asset custody services to institutional customers.

The proposed entity would enable Circle to directly custody USDC reserves and provide digital asset custody services to institutional clients, though it would not handle cash deposits or lending. This initiative is expected to further integrate digital assets into the broader financial system, making them more accessible and reliable for institutional investors. The establishment of a federally regulated trust charter would help Circle meet the expected requirements under the proposed GENIUS Act legislation, which represents a significant step forward in integrating digital assets into the broader U.S. financial system.

Circle’s application to the OCC builds on the company’s global track record of being first to seek key licenses and authorizations in multiple jurisdictions. In 2015, Circle secured the very first NYDFS BitLicense and remains committed to working with NYDFS, the leading digital asset regulator in the U.S. 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’s Co-Founder, Chairman, and CEO Jeremy Allaire stated, “Establishing a national digital currency trust bank of this kind marks a significant milestone in our goal to build an internet financial system that is transparent, efficient, and accessible. By applying for a national trust charter, Circle is taking proactive steps to further strengthen our USDC infrastructure. Further, we will align with emerging U.S. regulation for the issuance and operation of dollar-denominated payment stablecoins, which we believe can enhance the reach and resilience of the U.S. dollar, and support the development of crucial, market-neutral infrastructure for the world’s leading institutions to build on.”

BlackRock and BNY Mellon currently manage and custody Circle’s USDC reserves. While the new trust bank would take over reserve management, Circle intends to maintain relationships with major banks for portions of its holdings. Allaire indicated the bank would concentrate on tokenized stocks and bonds rather than digital assets like Bitcoin or Ether. This move is a strategic step by Circle to enhance its USDC infrastructure and align with emerging U.S. regulations, positioning the company as a leader in the digital asset custody space. By offering digital asset custody services to institutional customers, Circle aims to provide a secure and compliant environment for the management of digital assets.