Circle Applies To Launch National Trust Bank
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Stablecoin issuer Circle has applied to establish a national trust bank in the United States that, among other duties, would oversee the firm’s USDC reserve on behalf of its US issuer. If the application is approved by the US Office of the Comptroller of the Currency (OCC), Circle’s First National Digital Currency Bank would be authorized to operate as a federally regulated trust institution, Circle said in a statement on Monday. Circles Digital Bank also hopes to strengthen the infrastructure that “supports the issuance and circulation” of USDC (USDC) and offer digital asset custody services to institutional customers, the stablecoin issuer added. Source: Jeremy Allaire National Trust Banks can’t accept cash deposits or issue loans. However, they can offer custodial services and operate nationally under the oversight of the OCC, rather than having to apply for individual state-based money transmitter licenses or specific digital currency licenses, according to law firm Dave Wright Tremaine. GENIUS Act compliance Circle said a federally regulated trust charter would also help it meet requirements under the proposed GENIUS Act, which passed the US Senate on June 17 and moved to the House of Representatives, where it will face another vote before possibly becoming law. Circle co-founder and CEO Jeremy Allaire said Circle is taking “proactive steps to further strengthen our USDC infrastructure” and “align with emerging US regulation for the issuance and operation of dollar-denominated payment stablecoins.” National Trust Bank applications to the OCC are subject to a 30-day comment period, and the regulator usually decides to approve or reject within 120 days after receipt of a complete application. Other crypto firms also eye bank charters Circle isn’t the only crypto firm hoping to create a national trust bank under the oversight of the OCC. Eleanor Terrett, the host of the Crypto in America podcast,…
Filed under: News - @ July 1, 2025 11:24 am