Circle Internet Financial, the issuer of the USDC stablecoin, has applied for a national banking license, seeking to bolster its position in traditional finance immediately following a stunning IPO performance.
Bank License Application
Circle has formally submitted an application to the US Office of the Comptroller of the Currency (OCC) for a national bank charter. If granted, Circle would be authorized to operate as a bank but would not engage in traditional banking activities such as taking deposits or making loans. Instead, it will serve specialized functions including custody of Circle's reserves and providing digital asset custody services to institutional clients.
IPO Success and Institutional Confidence
Circle made its public debut on June 5, with an IPO that was oversubscribed by 25 times, closing at $82.80 and marking a 167% increase on its first trading day. The trading volume showed strong interest from institutional investors in regulated assets. Analysts noted that USDC could emerge as the largest regulated stablecoin under the new legislation, giving Circle a substantial first-mover advantage.
Emerging Competitive Threats
JPMorgan Chase has initiated coverage of Circle, rating it 'underweight' with a target price of $80 by December 2026. Analysts warn that Circle's stock could be overvalued and mention risks from rising competitors and potential regulatory measures. Increased competition in crypto payments and digital asset custody may pose a threat to Circle's market dominance.
By applying for a banking license, Circle is moving towards a more centralized and regulated role in the financial ecosystem, which could reshape the balance between traditional finance and digital assets.
