Circle (CRCL)the company behind USDC Stablecoin, explain On Monday, it had filed an application with the Office of the Auditor General of the Currency to form a federally regulated national trust bank.
The federal trust charter will put the circle under direct OCC supervision, keeping it in line with the way traditional financial institutions regulated. If approved, the new entity will be called the First Country Digital Currency Bank, and NA will oversee the custody of USDC reserves and provide services tailor-made to the institutions. If approved, Circle will join federal charter agencies such as Paxos and Anchorage, both of which have previously obtained trust bank status to provide national crypto-related services.
Trust bank identity will allow circles to operate on national lines with separate permissions in each state, a barrier that has complex extensions for many digital asset companies. This will also allow Circle to provide regulated digital asset custody services to institutional clients.
The move marks a strategic effort by Circle to consolidate its regulatory position as US legislation is like Genius Lawwhich will create a new guardrail for USD-backed stablecoins. The company said being a national trust bank would help meet the expected requirements of the bill, which passed through the Senate earlier this month and is now awaiting a vote in the House.
“By applying for the National Trust Charter, Circle is taking positive steps to further strengthen our USDC infrastructure,” Circle CEO Jeremy Allaire In a statement said. “We will align with the new regulations to issue USD-denominated payments stable shares, which we believe can enhance the coverage and resilience of the USD and support the establishment of vital market neutral infrastructure to build globally leading institutions to build establishments.”
Circle released the public last month and released the world’s second largest Stablecoin, USDC and the leading Euro-Peggg Gogg token Eurc.
The OCC, which oversees the National Bank and the Federal Savings Association, still must review and approve Circle’s application. In recent years, the agency has awarded similar charters to a handful of cryptocurrency companies, indicating an increasing regulation of digital asset companies operating within the framework of traditional banking.
renew (UTC, June 30, 2025): Additional information has been added.
