Market News

US Circle Aims for National Trust Bank License to Enhance Digital Asset Custody

Circle Internet Group Inc., a prominent stablecoin issuer in the crypto space, has officially applied for a national trust bank license in the United States through the Office of the Comptroller of the Currency (OCC).

The company plans to launch the First National Digital Currency Bank, which will oversee reserves for its USDC stablecoin.

Circle’s CEO, Jeremy Allaire, emphasized the firm’s commitment to trust and transparency, noting that achieving both public company status and a national trust license reflects this dedication.

If the OCC approves this application, Circle will join Anchorage Digital as a national trust bank, potentially attracting substantial capital from institutional investors into the cryptocurrency market.

The approval may eliminate liquidity challenges currently faced in the crypto sector, addressing concerns about market stability.

Supportive measures from the current U.S. administration, particularly under President Trump, have highlighted the need for clear regulatory frameworks that favor the growth of cryptocurrencies.

Moreover, acquiring this license will enable Circle to provide custody services for digital assets, catering specifically to institutional investor needs.

The robust performance of Circle in the stablecoin market has significantly increased interest from institutional clients, particularly following favorable legislative developments such as the recently passed Genius Act in the U.S. Senate.

President Trump has advocated for expedited legislative processes to further the adoption of stablecoins, signaling a favorable atmosphere for crypto innovation.

As Circle seeks this important banking charter, the trajectory of cryptocurrency regulation and institutional participation in the market could see transformative shifts.