Circle, known for its stablecoin USDC, has submitted an application to obtain a license for creating a national trust bank in the U.S.
Circle's Licensing Bid
Circle has submitted an application that would allow the company to establish First National Digital Currency Bank. This new entity will focus on providing custody services for its stablecoin USDC and tokenized financial assets.
Circle's Objectives and Plans
CEO Jeremy Allaire stated that the company intends to store part of its USDC reserves under the new trust while continuing to work with traditional banking partners. The license would also enable Circle to handle custody for tokenized stocks and bonds, although it does not extend to crypto assets like Bitcoin or Ethereum.
Impact on the Stablecoin Market
Circle's license bid mirrors that of Anchorage Digital, the only crypto-native firm to hold such a license. Allaire described the application as a natural next step following Circle’s public listing, emphasizing the firm’s long-standing focus on regulatory compliance and transparency.
Circle's ambition to obtain national trust bank status highlights its goals to strengthen its position in the stablecoin and financial technologies market.
