Circle Internet Group has applied to create the First National Digital Currency Bank that will oversee USDC reserves and provide digital asset custody services.
Reasons for Circle's Application
Circle applied to establish a national bank to strengthen its USDC infrastructure and reduce reliance on third parties, like BlackRock, that currently manage most reserves. This is necessary to enhance the safety of stablecoin users and minimize legal uncertainties.
Circle's Key Objectives with National Digital Currency Bank
The National Digital Currency Bank will manage USDC reserves and tokenized treasuries for Circle while offering blockchain-based payments under federal oversight. One of Circle's primary goals is to create a transparent and accessible internet financial system that meets legal compliance.
Status of the OCC Application
The OCC has not yet approved Circle's application for a national trust bank charter. The review process includes a 30-day public comment period before a final decision is made based on the required documentation and compliance with global standards.
With over $62 billion in USDC circulation, Circle is working to reduce its reliance on third parties and strengthen internal controls, potentially increasing transparency and safety of digital assets.
