Circle wins US national trust bank charter for digital assets
Circle has secured final US regulatory approval to establish a national trust bank, a move that could bring its USDC stablecoin reserves under direct federal oversight and lower operational risks for institutional investors.
Circle received final approval from the US Office of the Comptroller of the Currency on Friday to establish First National Digital Currency Bank, which will operate under the name Circle National Trust. The company applied for the federal charter in June 2025. Shares of Circle Internet Group surged roughly 16% in pre-market trading following the announcement, climbing above $73 after closing the prior session at $63.
The newly chartered institution will initially provide fiduciary digital asset custody exclusively for Circle and its affiliated companies. The approved business plan outlines a pathway to expand these custody services to a limited group of institutional clients. This could eventually include traditional banks and regulated derivatives firms, provided sufficient market demand develops.
The most significant long-term implication of the trust bank structure is the potential for Circle to manage the reserves backing its USDC stablecoin under direct federal supervision. Moving the USDC reserve on-balance sheet would represent a structural shift for the token, which currently holds a $73.3 billion market capitalization. For institutional investors, federal oversight of the reserve would directly address persistent concerns regarding the operational security and transparency of stablecoin backing assets.
Establishing this domestic regulatory foothold is a notable win for the crypto industry at a time when federal agencies are scrutinizing digital asset custody and banking access. It effectively bridges the gap between decentralized finance infrastructure and the traditional regulated banking system. By operating a national trust bank, Circle can offer institutional counterparties a level of regulatory certainty that offshore or state-chartered entities often struggle to match.
The OCC charter also complements Circle’s broader international compliance strategy. The firm secured a New York BitLicense in 2015 and became the first global stablecoin issuer to comply with the European Union’s MiCA framework last year. It additionally holds regulatory approvals in the UK, Singapore, Bermuda, Canada, and Abu Dhabi.
USDC has expanded its market footprint by 16.7% over the past year, growing from $62.8 billion, though it has experienced a modest 2.5% decline year-to-date from a January high of $75.2 billion. “OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the US financial system,” Circle CEO Jeremy Allaire said.
