Circle Applies for U.S. National Trust Bank License to Strengthen USDC Reserve Oversight

HKAN | Jul 1

In a major regulatory move, Circle, the company behind the popular USDC stablecoin, has filed an application for a U.S. national trust bank license with the Office of the Comptroller of the Currency (OCC).

 

If approved, this license would allow Circle to directly hold and manage USDC reserves and offer institutional crypto custody services—all under federal banking supervision.

 

 

What Is Circle Planning?

The new entity, to be called First National Digital Currency Bank, N.A., would give Circle:

 

Full control over USDC reserve assets

 

The ability to launch crypto custody services for institutional clients

 

Regulatory approval to operate across all 50 states without needing multiple state licenses

 

 

Currently, Circle’s USDC reserves are held by third parties like BNY Mellon, with investment management by BlackRock.

 

 

Why This Matters for USDC and Crypto Regulation

Circle’s decision comes at a time when U.S. stablecoin regulation is heating up. The upcoming Genius Act is expected to introduce strict requirements for stablecoin issuers, especially regarding reserve transparency and custody.

 

By applying for a national trust bank charter, Circle aims to:

 

✅ Strengthen regulatory compliance

✅ Build trust with institutional partners

✅ Position USDC as the most regulated and transparent stablecoin in the market

 

 

The Bigger Picture: Crypto Meets Traditional Banking

If Circle receives approval, it will join firms like Anchorage Digital, which already operate under similar federal charters.

 

This could mark the beginning of a new era of federally-regulated crypto financial institutions, blending traditional banking structures with digital asset services.

 

 

What Happens Next?

The OCC typically reviews applications within 90 to 120 days, with public comment periods before final decisions.

 

If successful, Circle will be one of the first major stablecoin issuers with direct U.S. banking oversight.

 

 

Final Thoughts

Circle’s push for a national trust bank license signals its long-term commitment to regulatory compliance, financial transparency, and the future of USDC adoption at institutional scale.

 

Stay updated on this developing story and more crypto regulatory news at HKAN News