U.S.-based stablecoin company Circle has submitted an application for a national trust bank license following its successful IPO at a valuation of around $18 billion.
National Trust Bank License Application
Circle has begun the process of obtaining a national trust bank license by applying to the U.S. Office of the Comptroller of the Currency (OCC). This is an important step for the company, allowing it to manage its own reserves and hold crypto assets on behalf of institutional clients.
Role and Potential of the New Bank
If Circle's application is approved, the company will establish a new unit called First National Digital Currency Bank, N.A. The license will not allow Circle to take cash deposits or make loans, which distinguishes it from traditional banks. The new bank will manage the majority of the reserves for the USDC stablecoin, backed by the U.S. dollar, although some reserves will continue to be held by major banks.
CEO Statement
Circle CEO Jeremy Allaire stated, 'Circle has long sought the highest levels of trust, transparency, governance and compliance. Becoming a public company was part of that vision. Becoming a national trust bank is a continuation of that.'
Obtaining this license would allow Circle to expand its range of services and reinforce its status in the digital asset sector. If successful, Circle will become the second company in the U.S. with a national trust bank license.
