Circle Files with OCC to Propose National Trust Bank

Circle continues series of events after going public

Circle Internet Group, Inc. (NYSE: CRCL), the company behind the world’s second-largest stablecoin USDC, has announced that it has filed for a national trust bank charter with the U.S. Office of the Comptroller of the Currency (OCC). If approved, Circle will establish First National Digital Currency Bank, NA, a national trust bank directly regulated by the OCC, with the goal of managing USDC reserves and providing digital asset custody services to institutional clients.

Circle’s application for a national banking license is a strategic move to strengthen USDC’s position amid growing regulatory scrutiny of stablecoins in the United States. If approved by the OCC, First National Digital Currency Bank, NA would allow Circle to directly manage its USDC reserves, which are currently held at institutions such as BNY Mellon and BlackRock, including liquid assets such as short-term Treasury securities and cash. This would reduce Circle’s reliance on traditional banking partners, increasing transparency and control over its reserves.

Furthermore, a national banking license would place Circle in the financial system that is directly regulated by the OCC, similar to traditional financial institutions. This would not only enhance Circle’s credibility, but would also help the company meet the expected requirements of the GENIUS Act, a stablecoin bill that was passed by the US Senate on June 17, 2025 and is currently pending in the House of Representatives. Compliance with these new regulations would help USDC solidify its position as the leading regulated stablecoin, with over $61 billion in circulation, second only to Tether (USDT). But why did Circle choose this time to apply?

What motivated Circle to pursue a national banking license?

The move comes just weeks after Circle completed a successful IPO in June 2025, valuing the company at nearly $18 billion, making it one of the most prominent fintechs on Wall Street. Going public reinforces Circle’s commitment to transparency, governance, and compliance – all important factors in building trust with investors and regulators.

According to CEO Jeremy Allaire, applying for a national banking license is “a major milestone in building a transparent, efficient and accessible internet financial system.” Another big driver is the rapidly changing regulatory landscape.

The GENIUS Act, if passed, would impose stricter requirements on stablecoin issuers, including maintaining transparent reserves and adhering to banking standards. By proactively seeking a license, Circle is not only preparing for new regulations, but also positioning itself as a leader in integrating digital assets into the U.S. financial system.

Furthermore, offering digital asset custody services to institutional clients — such as tokenized stocks and bonds — opens up a new revenue stream, helping Circle compete with rivals like Paxos and Anchorage Digital, which have received similar licenses. But does this trust banking model provide a competitive advantage?

Evaluation and Conclusion

Circle’s application for a national banking license to establish the First National Digital Currency Bank marks a turning point in the company’s strategy to bring the USDC stablecoin into the mainstream of the financial system. With the goal of increasing transparency, legal compliance, and providing custody services to institutions, Circle is not only strengthening its position but also helping to shape the future of digital finance. However, the journey is not easy, with regulatory challenges, competition, and strict requirements from the OCC. If successful, Circle could become a model for the convergence of crypto and traditional finance, ushering in a new era of stablecoins and financial applications on the blockchain. This event is not only a milestone for Circle but also an important step in bringing digital assets closer to billions of users globally.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.

Compiled and analyzed by HCCVenture

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