Circle Internet Group, the issuer of the USDC stablecoin, has officially applied for a national bank charter in the U.S. This move aims to integrate stablecoins into the regulated financial system.
Details of the Bank Charter Application
The application was made public on June 30 via a press release from Circle Internet Group. If approved, the new entity, named First National Digital Currency Bank, N.A., would be authorized to manage the reserves backing USDC and offer digital asset custody services to institutional clients under federal oversight.
Goals and Opportunities for the New Bank
With the charter, Circle would be able to operate as a trust institution subject to federal regulation, similar to Anchorage Digital. While it will not accept deposits or issue loans like a traditional bank, the trust charter would enable Circle to hold crypto and tokenized financial instruments on behalf of its clients.
Context and Future of Stablecoins in the U.S.
Circle's application aligns with expected requirements under the GENIUS Act, which mandates full backing by liquid assets and transparent monthly reserve disclosures. The bill has passed the Senate and is awaiting House approval. Circle continues its history of regulatory firsts, having been the first recipient of significant licenses for stablecoin compliance.
Circle's application for a bank charter marks a significant step toward integrating stablecoins into the traditional U.S. financial system, opening new opportunities for managing digital assets.
