Circle has received final approval from the U.S. Office of the Comptroller of the Currency to set up a national trust bank, a move that gives the USDC issuer a federally supervised banking vehicle for custody operations.
The company said on July 10 that the OCC approved the launch of First National Digital Currency Bank, which will operate as Circle National Trust. The new entity will sit under direct OCC oversight and is designed to strengthen the custody infrastructure behind USDC, Circle’s dollar-backed stablecoin.
At first, the bank will serve Circle and its affiliates. Over time, the business plan approved by the regulator allows it to expand into reserve management functions, and later to offer digital-asset custody services to banks and some institutional investors, including regulated derivatives firms, if demand develops.
Circle co-founder and chief executive Jeremy Allaire described the approval as a turning point for bringing blockchain technology and digital assets into the core of the U.S. financial system. He said the structure should also give financial institutions a clearer regulatory framework for using public blockchains.
The timing was quickly reflected in the stock. Circle shares were trading at $69.49 in premarket activity, up 10.29% from the previous close. The next item for traders to watch is when Circle National Trust actually begins operations and whether the company follows through on its plan to broaden custody and reserve services beyond its own businesses.
Circle gains US approval to create national trust bank, boosting USDC stablecoin security
Circle received final approval from the US regulator to launch a national trust bank for managing its USDC stablecoin deposits. This bank will improve the safety of USDC funds and could later offer custody services to other financial institutions, affecting digital asset management in the US.