Circle Applies for US Trust Bank Charter to Manage USDC Reserve
Circle, a leading stablecoin issuer, has submitted an application for a national trust bank charter in the United States. This strategic move is designed to oversee the USDC reserve and expand digital asset custody services, pending approval from the Office of the Comptroller of the Currency (OCC).
Implications for USDC and the Crypto Market
Approval would establish Circle’s First National Digital Currency Bank as a federally regulated trust institution, bolstering the stability and regulatory alignment of USDC. This step reflects Circle’s commitment to adhering to evolving US regulations for dollar-denominated payment stablecoins.
Industry Trends: Crypto Firms Seeking Bank Charters
Following Anchorage Digital Bank‘s precedent, other crypto firms like Fidelity‘s digital currency division are exploring similar applications. This trend underscores the growing intersection of traditional banking and digital assets.
Key Details
- The OCC will review Circle’s application over a 30-day comment period followed by a potential 120-day decision window.
- As a National Trust Bank, Circle could offer custodial services but would not accept deposits or issue loans.
- Market reaction remained neutral, with Circle’s stock showing minimal price movement post-announcement.
