Circle, the issuer of the USDC stablecoin, has applied to establish a national trust bank in the United States. This bank would manage USDC reserves and provide custody services to institutional clients.
Application for National Trust Bank
Circle has submitted an application to the US Office of the Comptroller of the Currency (OCC) to create the First National Digital Currency Bank. If approved, the bank would operate as a federally regulated trust institution. Circle stated that this move would strengthen the infrastructure supporting the issuance and circulation of USDC and offer custody services for institutional clients.
Compliance with GENIUS Act
Circle stated that a federally regulated trust charter would help it meet requirements under the proposed GENIUS Act, which passed the US Senate on June 17 and moved to the House of Representatives for another vote. Circle co-founder Jeremy Allaire noted that the company 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.'
Other Crypto Firms Eyeing Bank Charters
Circle is not the only crypto firm looking to create a national trust bank. According to Eleanor Terrett, host of the *Crypto in America* podcast, several other companies, including the digital currency division of financial services giant Fidelity, are also applying for national bank charters from the OCC.
Circle's application for a national trust bank highlights the importance of regulation in the cryptocurrency space and the desire of firms to adhere to new requirements. As Circle awaits the OCC's decision, other crypto players are also showing interest in similar steps.
