Circle Moves to Establish National Trust Bank to Oversee USDC Reserves

Stablecoin issuer Circle has officially applied to establish a national trust bank in the United States, aiming to oversee its USDC reserves while aligning with emerging federal regulations. If approved by the Office of the Comptroller of the Currency (OCC), Circle’s “First National Digital Currency Bank” will operate as a federally regulated trust institution, the company announced on Monday. This move is part of Circle’s efforts to strengthen the infrastructure supporting the issuance and circulation of USDC, while also expanding its custodial services for institutional clients. National Trust Banks are not permitted to accept cash deposits or issue loans but can provide custody services and operate nationwide under OCC oversight, eliminating the need for state-based money transmitter licenses, according to law firm Davis Wright Tremaine. Circle Aligning with the Regulatory Clarity Circle’s pursuit of a federally regulated trust charter is also aimed at ensuring compliance with the proposed GENIUS Act, which passed the US Senate on June 17 and now awaits a House vote. This legislation, if enacted, would set standards for the issuance and management of dollar-backed payment stablecoins within the US. Jeremy Allaire, Circle’s co-founder and CEO, emphasized that the company is taking “proactive steps to further strengthen our USDC infrastructure” while aligning operations with the “emerging US regulation for the issuance and operation of dollar-denominated payment stablecoins.” National Trust Bank applications undergo a 30-day public comment period, with the OCC typically providing a decision within 120 days after receiving a complete application. Crypto Firms Show Growing Interest in Bank Charters Circle is not alone in seeking a national trust bank license under the OCC’s supervision. Eleanor Terrett, host of the “Crypto in America” podcast, highlighted that multiple crypto firms, including Fidelity’s digital currency division, are pursuing similar bank charter licenses. The company has reportedly been exploring this pathway since at least 2022, according to The Wall Street Journal, joining other crypto players like Anchorage Trust Company, which became Anchorage Digital Bank after receiving OCC approval in January 2021. Meanwhile, Circle Internet Group (CRCL) shares remained stable in the last trading session, with a slight increase of 0.48% to $181, as per Google Finance data. However, after-hours trading saw the stock dip by 1.30% to $178. The company’s stock made a notable entry on June 5, surging 167% during its debut session on the New York Stock Exchange, reflecting investor confidence as the company advances toward deeper regulatory alignment in the stablecoin market. The post Circle Moves to Establish National Trust Bank to Oversee USDC Reserves appeared first on TheCoinrise.com .

Source: The Coin Rise