by aria-ratings.com
July 1, 2025 at 11:02
Circle Advances to Establish National Trust Bank in the US After $18 Billion IPO
Circle, the issuer of USDC, is planning to establish a national trust bank in the United States following its $18 billion Initial Public Offering (IPO).
The proposed entity, named First National Digital Currency Bank, N.A., seeks approval from the US Office of the Comptroller of the Currency (OCC) to act as a custodian for crypto asset reserves for institutional clients.
CEO Jeremy Allaire emphasized the company's commitment to trust and compliance, highlighting that becoming a publicly traded company is integral to this vision.
This new trust bank will have a unique charter that prohibits accepting cash deposits or issuing loans, indicating a focus solely on digital asset custody rather than traditional banking services.
Currently, Circle’s reserves are managed by BNY Mellon and BlackRock, primarily comprising short-term Treasury bills and other liquid assets.
As Congress approaches a federal regulatory framework for stablecoins, the GENIUS Act mandates more stringent reserve disclosures, affecting Circle’s operations.
Allaire anticipates this shift will push stablecoins into the mainstream financial ecosystem.
Despite the positive response from some analysts, with buy ratings pushing stock targets above $200 for Circle, caution remains over its recent valuation drop to $180, significantly lower from a record of $299.
Allaire concluded that the establishment of the national digital currency trust bank marks a vital step towards enhancing transparency and accessibility in the internet financial system.
As regulations evolve, Circle positions itself to be a leader in this new digital banking frontier.
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