Circle Wins OCC Approval For National Trust Bank Charter
By CU Today Staff —
NEW YORK—Stablecoin issuer Circle has received final approval from the Office of the Comptroller of the Currency to establish a national trust bank, marking a significant step in bringing digital assets deeper into the U.S. banking system despite opposition from banking trade groups that had urged regulators to reject the company's charter application, Reuters reported.
The OCC's approval allows the new entity, Circle National Trust, to operate under federal oversight, provide digital asset custody services and eventually manage reserves backing the company's USDC stablecoin. Circle CEO Jeremy Allaire called the approval "a defining step" in integrating blockchain technology into the U.S. financial system. The charter does not permit the company to accept deposits or make loans like a traditional bank.
The approval follows Circle's conditional charter approval in December and comes as Congress and federal regulators continue implementing a broader framework for stablecoins. Reuters reported the charter positions Circle to act as custodian for its own reserves while holding digital assets for institutional clients, as more crypto firms seek banking licenses and expand into traditional financial services. Shares of Circle rose sharply following the announcement.
The decision comes despite objections from banking lobbyists, who argued during the charter review that granting a national trust charter to a stablecoin issuer could blur the line between banking and crypto activities. The OCC nonetheless granted final approval, placing Circle National Trust under direct federal supervision as the company seeks to expand institutional custody services and further integrate USDC into the regulated banking system.
Originally reported by CU Today.