Circle Approved to Operate as a Trust Bank by US Regulator
Stablecoin issuer Circle received approval from the U.S. Office of the Comptroller of the Currency to operate as a trust bank. The decision allows the company to directly manage reserves for its USDC stablecoin.
Circle, the issuer of the USDC stablecoin, has received approval from the U.S. Office of the Comptroller of the Currency (OCC) to operate as a trust bank. This charter enables the company to directly manage the reserves backing its stablecoins, which currently exceed $73 billion in circulation.
The newly chartered entity, Circle National Trust, will hold the cash and Treasury assets backing USDC in its own custody. Previously, Circle relied on third-party banks and custodians for these functions. The approval does not grant Circle the ability to operate as a commercial bank taking deposits or making loans.
The move reflects a broader industry trend where crypto companies are seeking to transition from financial applications to a role as financial infrastructure providers. Other firms like Coinbase, BitGo, and Ripple have also obtained or applied for similar regulated charters.
Operating under a national trust bank charter from the OCC provides Circle with federal regulatory oversight, a shift from state-specific regulations. This development is significant in the evolving landscape of digital asset regulation, particularly after the passage of the GENIUS Act, which established a federal framework for payment stablecoins. The charter solidifies Circle's position as regulated infrastructure for institutional clients.