Circle, the company behind the USDC stablecoin, has submitted an application to the Office of the Comptroller of the Currency (OCC) to form a National Digital Bank, potentially enhancing its regulatory standing in the U.S.
Formation of National Digital Bank
If approved, the new bank would be named the First National Digital Currency Bank and would operate as a federally regulated entity overseeing the USDC reserves.
Steps Toward Transparency and Regulation
Circle's CEO Jeremy Allaire termed the move as a significant step towards creating a more transparent digital financial system. He stated: “Establishing a national digital currency trust bank marks a significant milestone in our goal to build a transparent and efficient internet financial system.”
Trends in the Cryptocurrency Market
Circle is not the only crypto company seeking national trust bank status. Reports indicate that several other firms have submitted similar applications, reflecting a broader industry effort toward regulatory alignment.
Circle's application to create a National Digital Currency Bank may mark a new chapter in the evolution of stablecoins and improve transparency in the sector as lawmakers intensify scrutiny of digital assets.
