Circle Internet Group, a prominent stablecoin issuer, has submitted an application for a national trust bank license in the US.
Application for National Trust Bank License
Circle Internet Group Inc. has filed an application with the Office of the Comptroller of the Currency (OCC) for a national trust bank license. The company intends to establish the First National Digital Currency Bank, which will manage its reserves in USDC.
Expected Impact on Crypto Market
If approved by the OCC, Circle will join Anchorage Digital, which has already been granted a similar charter. This will likely result in more institutional investors' capital flowing into the crypto market, effectively addressing liquidity concerns.
Role of Regulation and Legislation
Circle will also be able to provide custody services for digital assets on behalf of institutional investors. Recently, demand for stablecoins from institutional investors has surged, partly due to the recent approval of the GENIUS Act in the US Senate.
Circle's pursuit of a national trust license highlights the importance of transparency and compliance in the rapidly evolving digital asset sector.
