The OCC approves Circle to become a U.S. National Trust Bank

Can stablecoins become banks?

The Office of the Comptroller of the Currency (OCC) has granted Circle Internet Financial a national trust bank license, making Circle the first major stablecoin issuer to receive full federal banking status in the United States. This approval, confirmed through legal filings and reported by Bloomberg, Reuters, and CoinDesk on January 19, 2026, allows Circle to operate as a federally licensed trust firm under OCC oversight — a significant step up from its existing money transfer licenses and NYDFS trust licenses. This license allows Circle to:

• Acting as a custodian for digital assets and traditional securities.

• Providing trust services, including trust fund management, for institutional clients.

• Providing custody and payment services for crypto assets and stablecoins.

• Expand the management of USDC reserves under direct federal supervision.

• The bank has the authority to issue new financial products.

This move follows Circle's lengthy licensing process (which began in 2021) and the passage of the GENIUS Act (2025), which established a federal framework for stablecoin payments and encouraged non-bank issuers to seek bank licenses to enhance credibility and operational flexibility.

Announcement of decision

A National Trust Bank license allows an institution to provide trust and custody services under federal supervision, without engaging in traditional retail lending. For Circle, this license would formalize its role in safeguarding assets, managing reserves, and operating payment infrastructure—under the same supervisory system as established trust banks.

More importantly, this license provides nationwide jurisdiction, eliminating the need for multiple different state licenses and placing Circle's operations within a single, strictly federal framework.

The approval represents a pragmatic shift in the US regulatory stance; instead of forcing stablecoin operations overseas or into legal gray areas, regulators are bringing compliant issuers into the banking sphere.

Industry-wide competitive impact

Circle's upgrade has raised the bar for competitors. Stablecoin issuers without federal licenses may face pressure from institutional clients, who prefer partners operating under OCC oversight. Over time, this could spur consolidation toward more tightly regulated, bank-like stablecoin models.

For traditional banks, Circle's position transforms them from a fintech partner into a peer-to-peer partner within the trust banking ecosystem, potentially fostering collaboration—or competition—around payment, custody, and tokenization issues.

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

Compiled and analyzed by HCCVenture

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