01.07.2025 05:30

Circle, the company responsible for the USDC stablecoin, has submitted an application to the Office of the Comptroller of the Currency (OCC) to establish a nationally chartered trust bank, the company announced on Monday. This bold move aims to bring Circle under the direct regulatory purview of the OCC, mirroring the oversight applied to established financial institutions.

Should the application be successful, the newly formed entity, "First National Digital Currency Bank, N.A.", will manage the custody of USDC reserves and provide specialized services catering to institutional clients. This would place Circle alongside other federally chartered institutions such as Paxos and Anchorage, who have already secured similar trust bank status to offer nationwide crypto services.

A key benefit of this national charter is the elimination of the need for separate state-level licenses, a significant obstacle for many digital asset firms seeking nationwide expansion. Furthermore, it will enable Circle to provide regulated digital asset custody services to institutional investors.

This strategic move underscores Circle's commitment to robust regulatory compliance, particularly in light of pending legislation like the GENIUS Act, designed to regulate dollar-backed stablecoins. Circle anticipates that its national trust bank status will facilitate compliance with the Act’s provisions, following its recent passage through the Senate and its pending House vote.

In a statement, Circle CEO Jeremy Allaire highlighted the proactive nature of this application, emphasizing its role in bolstering USDC infrastructure and aligning with evolving U.S. regulations. He further suggested that this move could bolster the U.S. dollar's global reach and provide crucial, neutral infrastructure for leading global institutions. This announcement follows Circle's recent initial public offering (IPO), solidifying its position as the issuer of the world's second-largest stablecoin.