Circle Applies for National Trust Bank Charter

Circle (CRCL), the company behind the USDC stablecoin, said Monday it has filed an application with the Office of the Comptroller of the Currency to form a federally regulated trust bank.

A federal trust charter would bring Circle under direct OCC oversight, aligning it with how traditional financial institutions are regulated. If approved, the new entity called First National Digital Currency Bank, N.A. would oversee custody of USDC reserves and offer services tailored to institutions.

The move signals a strategic effort by Circle to solidify its regulatory standing as the U.S. mulls legislation like the GENIUS Act, which would create new guardrails for dollar-backed stablecoins.

“By applying for a national trust charter, Circle is taking proactive steps to further strengthen our USDC infrastructure,” Circle CEO Jeremy Allaire said in a statement. “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 went public last month and issues the second-largest stabelcoin USDC and the leading euro-pegged token EURC.