Circle, the issuer behind the USDC stablecoin, has filed to establish a national trust bank in the United States. If approved, this move would make Circle one of the few crypto firms to operate under federal regulation, allowing it to directly manage and safeguard its USDC reserves.
The proposed institution, named the First National Digital Currency Bank, would be overseen by the Office of the Comptroller of the Currency (OCC) and operate under a federally regulated trust charter. Unlike traditional banks, national trust banks cannot issue loans or accept cash deposits, but they are authorized to provide custody services and manage digital assets nationwide.
🔐 Why Circle Is Making This Move Now
The announcement follows Circle’s long-term effort to position USDC as a fully regulated, transparent, and compliant stablecoin. The company stated that its trust bank would help enhance the infrastructure behind USDC and offer institutional-grade custody for digital assets.
This move is also seen as proactive preparation for the GENIUS Act, a proposed law that recently passed the U.S. Senate and now awaits a House vote. The legislation aims to regulate dollar-backed stablecoins more strictly, requiring clear oversight and strong reserve backing.
Circle CEO Jeremy Allaire emphasized that the firm is taking steps to “strengthen our USDC infrastructure” and align with “emerging US regulation for the issuance and operation of dollar-denominated payment stablecoins.”
⏳ What’s Next for the Bank Charter?
Applications for a national trust bank must go through a 30-day public comment period, and the OCC typically takes up to 120 days to approve or reject. If granted, Circle would no longer need to apply for individual state licenses, allowing it to operate more efficiently across the U.S.
🧩 Other Crypto Firms May Follow
Circle isn’t alone. Several other crypto and financial firms—including a crypto division of Fidelity—are reportedly eyeing similar national trust bank licenses. Since Anchorage Digital became the first crypto firm to receive such a license in 2021, the regulatory route has become more attractive to companies seeking long-term stability in the U.S.
📉 Market Reaction Remains Subdued
Circle Internet Group (CRCL), the firm’s public entity, saw its stock price rise 0.48% to $181 during regular trading. However, shares dropped 1.30% to $178 in after-hours trading. Despite the muted reaction, investors are watching closely to see how this regulatory pivot could affect USDC’s future role in global finance.
🧠 Why This Matters
A federally regulated trust bank would solidify Circle’s legitimacy and operational strength, especially as stablecoins come under increasing scrutiny. It also reflects a broader shift in crypto: institutional players are looking for compliance-first infrastructure to unlock the next wave of adoption.
👉 Stay updated on Circle and stablecoin regulation at https://cryptodicenews.blog/
