01.07.2025 04:00
Circle, a leading US-based stablecoin issuer recently valued at approximately $18 billion following its initial public offering, has submitted a significant application to the Office of the Comptroller of the Currency (OCC). This application marks the company's formal pursuit of a national trust bank license.
Securing this license would grant Circle the crucial ability to hold and manage its own reserves, a significant step towards enhanced transparency and control. Furthermore, it would allow the company to offer institutional clients custody services for their digital assets. Importantly, however, this license, unlike a standard banking charter, would not permit Circle to accept cash deposits or extend loans.
Circle's CEO, Jeremy Allaire, explained the strategic rationale behind this move, highlighting the company's ongoing commitment to robust governance and compliance. He emphasized the application as a natural progression following their IPO, further solidifying Circle's position as a trusted player in the digital asset space. The proposed bank, should the application be approved, will be named First National Digital Currency Bank, N.A.
Currently, Anchorage Digital holds the sole national trust bank license among US digital asset companies. Circle’s success in obtaining the license would make them the second, significantly expanding the landscape of regulated digital asset custodians in the United States. The newly established bank will primarily manage reserves backing USDC, Circle’s dollar-pegged stablecoin. Nevertheless, Allaire clarified that a portion of these reserves will remain with established major banks. This new structure will also facilitate Circle's expansion into institutional digital asset custody, though Allaire specified this service will initially focus on tokenized traditional assets, such as stocks and bonds, rather than cryptocurrencies like Bitcoin or Ethereum.
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