Circle Internet Group, the issuer of the USDC stablecoin, has applied to create the First National Digital Currency Bank aimed at managing USDC reserves and providing digital asset custody services.
Objectives of the Bank
Circle's application for establishing a national digital currency bank is aimed at enhancing the structure for managing USDC reserves and complying with new regulatory requirements expected under the proposed GENIUS Act.
Significance of Circle's Initiative
Circle's CEO Jeremy Allaire stated that establishing a national digital currency trust bank represents a significant milestone toward building a transparent and accessible internet financial system. The initiative aims to support the resilience and broader adoption of the U.S. dollar through regulated stablecoins.
New Reserve Management Opportunities
Currently, Circle's USDC reserves are managed by BlackRock and BNY Mellon, but forming its own trust bank would allow Circle to take direct custody while maintaining partnerships with major banks for parts of its holdings. The bank would focus on custody for tokenized stocks and bonds rather than volatile cryptocurrencies.
Circle's initiative to establish a national digital currency bank highlights the company's drive for greater independence in asset management and advancements in stablecoin regulation in the U.S.
