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Circle Strengthens USDC Foundation with New Trust Bank Application

Circle Internet Group has officially applied for a national trust bank charter to enhance its operations involving the USDC stablecoin.

This move, disclosed by Reuters, aims to solidify Circle’s position within the U.S. financial system while facilitating the management of USDC's reserves.

If approved by the Office of the Comptroller of the Currency (OCC), the proposed First National Digital Currency Bank would provide custodial services but not traditional banking activities like accepting deposits or making loans.

Circle's efforts to secure a bank charter align with the upcoming GENIUS Act, which seeks to regulate stablecoins more comprehensively.

The company is optimistic that the trust bank model will help sustain and expand the infrastructure necessary for USDC, which boasts a market cap of approximately $61.5 billion.

Co-founder and CEO Jeremy Allaire emphasized the proactive approach Circle is taking to align with evolving regulations for dollar-backed stablecoins.

The OCC's process for evaluating bank charter applications typically involves a public comment period and a decision within 120 days.

Circle is not alone; other crypto firms, including Fidelity’s digital currency branch, are also seeking federal banking charters.

This strategic move follows Circle's successful public offering, which saw its stock surge by 167% on its debut.

With these developments, Circle is positioning USDC to potentially become the largest regulated stablecoin in the U.S. market.