Circle, the issuer of the world's second-largest stablecoin USDC, has filed an application to establish a national trust bank. This initiative aims to bring USDC operations under federal oversight.
Application for National Trust Bank
Circle has submitted an application to the Office of the Comptroller of the Currency (OCC) to obtain a national trust bank charter. The proposed entity, named First National Digital Currency Bank, N.A., would manage USDC reserves and provide institutional services.
Strategic Benefits and Regulatory Alignment
Gaining trust bank status would allow Circle to operate nationwide without needing separate state licenses, removing significant expansion barriers. This status would also enable the company to offer regulated digital asset custody services to institutional clients. Circle will join other federally chartered institutions like Paxos and Anchorage that provide crypto-related services under banking regulations.
Market Position and CEO Statement
Circle CEO Jeremy Allaire stated, "By applying for a national trust charter, Circle is taking proactive steps to further strengthen our USDC infrastructure." This reflects the company's aim to align with evolving U.S. cryptocurrency legislation.
Circle's pursuit of federal banking status highlights the ongoing integration of the cryptocurrency industry with traditional financial regulations. Approval of this application could set a precedent for other digital asset firms.
