Circle (CRCL), the issuer of the USDC stablecoin, announced on Monday its submission of an application to the Office of the Comptroller of the Currency to create a federally regulated national trust bank.
This federal trust charter aims to place Circle under direct oversight from the OCC, aligning it with regulations governing traditional financial institutions. If granted, the new entity, to be named First National Digital Currency Bank, N.A., will manage custodial services for USDC reserves and offer various institutional services. This strategic step is in line with forthcoming U.S. regulations concerning stablecoins.
Key Information:
- Circle’s application aims for a federal charter with oversight by the U.S. Office of the Comptroller of the Currency.
- The proposed bank will manage USDC reserves and cater to institutional clients.
- This initiative corresponds with new U.S. legislation concerning stablecoins.
Circle’s Actions: The application for national trust bank status signifies a proactive measure for Circle to strengthen its regulatory framework as the U.S. evaluates legislation such as the GENIUS Act. According to Circle CEO Jeremy Allaire, “By applying for a national trust charter, Circle is taking proactive steps to further strengthen our USDC infrastructure. We will align with emerging U.S. regulation for the issuance and operation of dollar-denominated payment stablecoins, which we believe can enhance the reach and resilience of the U.S. dollar, and support the development of crucial, market-neutral infrastructure for the world’s leading institutions to build on.”
Circle recently went public and currently issues the second-largest stablecoin globally, USDC, alongside the leading euro-pegged token EURC. The OCC’s decision regarding Circle’s application remains pending.
