Circle Seeks OCC Charter for First US Digital Currency Bank

Circle, the fintech firm behind USDC, has filed an application with the Office of the Comptroller of the Currency (OCC) to establish America’s first digital currency bank, a national trust institution that would bring stablecoins fully into the federally regulated financial system. The proposed entity, First National Digital Currency Bank, would not operate like a traditional consumer bank, offering no deposits or loans. Instead, it would focus on Circle USDC trust bank functions, including safeguarding USDC reserves, managing cash and short-term Treasury holdings, and offering digital asset custody services to institutional clients.

Circle is becoming a serious contender in global finance. With over $62 billion in USDC in circulation, it’s the second-largest stablecoin globally. Until now, reserve management relied on third-party custodians like BlackRock and BNY Mellon. By pursuing a Circle OCC charter application, Circle aims to internalize control, streamline operations, minimize risk, and strengthen transparency. This move aligns Circle with current legislation, such as the GENIUS Act, which sets a new bar for regulated stablecoin infrastructure, including 1:1 reserve backing, monthly attestations, and federal oversight. By applying for a federal trust charter, Circle shows it’s ready to meet and help define future US standards for digital currency banking.

A federal charter gives Circle regulatory credibility, full control over USDC reserves, and the ability to offer secure custody services to institutions. A federal OCC trust charter would immediately improve Circle’s position, making it a federally regulated bank subject to OCC and Federal Reserve oversight. This change demonstrates compliance, permanence, and trust, following in the steps taken by Anchorage Digital, but with far broader implications given USDC’s adoption. Analysts suggest the charter could bolster Circle investor confidence, enabling broader partnerships across banking, fintech, and capital markets.

Gaining a national trust charter would bring Circle’s $62.1 billion of reserves in-house. This means Circle can directly oversee the assets that back its stablecoin, adding operational efficiency while reducing counterparty risk. As trust in stablecoins increasingly hinges on how reserves are held and reported, this move gives Circle stronger guarantees around security, liquidity, and compliance with both US and international standards, like Markets in Crypto-Assets (MiCA) compliance and the GENIUS Act stablecoin regulation.

Circle’s new trust wouldn’t offer deposits or retail lending. It would, however, unlock a suite of business-to-business opportunities. With federal approval, Circle could expand its digital asset custody services — not just for USDC, but for tokenized assets, corporate treasuries, and other blockchain-based financial instruments. In doing so, Circle would develop into payment infrastructure, bridging traditional finance and Web3. As firms across the globe pursue licenses, Circle’s US-based trust bank could serve as a model of how to structurally align with both US stablecoin legislation and global compliance norms.

With investor confidence surging after Circle’s blockbuster initial public offering (IPO) and new federal rules giving stablecoins a regulatory path forward, the conditions are finally right to launch a fully regulated digital currency bank. Circle’s June 5 debut on the New York Stock Exchange sent a clear message that markets are ready to back a regulated stablecoin issuer. The stock opened at $69 — more than doubling its $31 listing price — and briefly topped $100 before settling at $83. That day, Circle closed with a market cap near $6.9 billion and nearly 200% growth, reflecting soaring demand for companies that sit at the intersection of TradFi and DeFi.

At the same time, Washington gave its strongest nod yet to stablecoin regulation. The GENIUS Act stablecoin regulation, passed by the Senate just 12 days after Circle’s IPO, set out comprehensive guardrails: 1:1 dollar backing, real-time attestations, and oversight by federal banking regulators such as the OCC. Under Acting Comptroller Rodney Hood, the agency has signaled support for responsible crypto integration, especially through the Circle OCC charter application process. With this in mind, Circle’s decision to pursue America’s first digital currency bank feels like a precisely calculated one.

Circle’s bank could unlock institutional access, fuel USDC adoption, and transmute how stablecoins fit into the global financial system. As a federally regulated bank, Circle would act as connective tissue between crypto and established finance. Pension funds, asset managers, and insurers often require federally supervised partners before engaging in digital assets. A Circle digital currency bank, governed under OCC oversight, could unlock these channels. Moreover, just as money market funds became mainstream after tighter rules boosted trust, Circle aims to make USDC reserve management a benchmark for stability.

One key advantage of a Circle stablecoin bank is flawless integration. Institutional-grade digital asset custody services would support tokenized securities, real-time payments, and programmable finance. With partners like Visa, Stripe, and BlackRock already experimenting with Circle payment infrastructure, the next phase is deeper adoption — OAuth-style plug-and-play modules that let banks and fintechs offer USDC without friction.

Circle’s charter could pave the way for a new category of federally recognized crypto bank charter holders. Legacy firms like JPMorgan and Bank of America are reportedly working on jointly issuing a stablecoin. A successful Circle trust bank would validate the model, encouraging competitors to seek their own national trust charter crypto approvals. In terms of the broader impact, we can expect stronger interoperability, better compliance frameworks, and greater Circle investor confidence. Whether for regulators, institutions, or global partners, Circle’s move sets a precedent that stablecoins can evolve into bank-grade, regulated infrastructure.