Key facts
- Circle received final approval from the US OCC to establish a national trust bank.
- The bank, named Circle National Trust, will operate under federal regulation.
- It will initially provide digital asset custody for Circle and its affiliates.
- Circle CEO Jeremy Allaire stated the approval integrates blockchain into the US financial system.
- Circle's stock rose approximately 16% in pre-market trading following the announcement.
Circle, the issuer of the USDC stablecoin, announced on Friday that it has received final approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank. The new entity, to be named Circle National Trust, will operate under federal regulation and aims to integrate blockchain technology and digital assets into the U.S. financial system, according to Circle CEO Jeremy Allaire.
Initially, Circle National Trust will focus on providing fiduciary digital asset custody services for Circle and its affiliated companies. The business plan allows for potential expansion to a limited group of institutional clients, such as banks and regulated derivatives firms, should demand arise. This federal charter could also enable future management of the USDC Reserve under federal oversight.
The OCC approval adds to Circle's growing regulatory compliance, which includes being the first company to receive a BitLicense from the New York Department of Financial Services in 2015 and complying with the EU's Markets in Crypto-Assets Regulation (MiCA) in 2024. Circle has also secured approvals in the UK, Singapore, Bermuda, Canada, and Abu Dhabi.
At the time of reporting, USDC is the second-largest stablecoin by market capitalization at $73.3 billion. Circle's stock (CRCL) saw a significant rise, climbing approximately 16% in pre-market trading following the announcement.