Circle, the issuer of the USDC stablecoin, has submitted an application to obtain a license to create a national trust bank in the U.S., aimed at aligning with federal norms.
Objectives of Creating the National Bank
Circle aims to strengthen the infrastructure supporting the issuance and circulation of USDC while expanding its custodial services for institutional clients. The new bank, if approved by the Office of the Comptroller of the Currency (OCC), will operate as a federally regulated trust institution.
Compliance with Regulatory Acts
The application for a trust license is also aimed at compliance with the GENIUS Act, which has passed the Senate and is awaiting a House vote. This legislation will set standards for the issuance and management of dollar-backed payment stablecoins in the U.S. Jeremy Allaire, Circle's co-founder and CEO, noted that the company is taking 'proactive steps to further strengthen our USDC infrastructure' and aligning operations with emerging U.S. regulations.
Interest in Bank Charters Among Crypto Firms
Circle is not the only company seeking a national trust bank license. Several crypto firms, including Fidelity’s digital currency division, are also exploring similar pathways. Circle has reportedly been examining this route since at least 2022, joining other crypto players like Anchorage Trust Company.
Circle's application to create a national trust bank highlights a growing trend among crypto firms to expand their operations in compliance with new regulatory requirements, which may reshape the stablecoin market in the U.S.
