Circle Applies for National Trust Bank Charter Following IPO

Circle, the issuer of the USD Coin (USDC) stablecoin, has formally applied to the U.S. Office of the Comptroller of the Currency (OCC) for a national trust bank charter. If approved, the new entity, named First National Digital Currency Bank, N.A., would manage USDC reserves and offer digital asset custody services to institutional clients.

This move follows Circle's recent initial public offering (IPO) on June 5, 2025. Since then, Circle's stock has surged, with the current trading price around $181, bringing its market capitalization to about $44 billion.

The national trust bank charter would place Circle under direct federal oversight by the OCC, aligning it with traditional financial institutions. Unlike full-service banks, national trust banks cannot accept cash deposits or issue loans but can offer custodial services for digital assets.

Currently, Circle's USDC reserves, comprising short-dated U.S. Treasury bills, overnight Treasury repurchase agreements, and cash, are held in custody at BNY Mellon and managed by BlackRock. With the new charter, Circle aims to directly manage these reserves through its trust bank, while maintaining relationships with major banks for portions of its holdings.

Circle's application coincides with the advancement of the GENIUS Act in Congress, legislation that seeks to establish a federal regulatory framework for stablecoins. The bill, which has passed the Senate and is expected to clear the House this summer, would require stablecoins to be backed by liquid assets and mandate monthly reserve disclosures. President Trump is anticipated to sign the measure into law.

Jeremy Allaire, Circle's co-founder and CEO, stated that the establishment of a national digital currency trust bank represents a significant milestone in building a transparent and efficient internet financial system. He emphasized that the move aligns with emerging U.S. regulations for dollar-denominated payment stablecoins and supports the development of infrastructure for global institutions.

If approved, Circle would join Anchorage Digital as one of the few digital asset firms with a national trust bank charter. This development reflects a broader trend of cryptocurrency companies seeking formal banking charters to integrate more closely with the traditional financial system.

Circle’s public market debut has been met with strong interest, as firms like Barclays, Bernstein, and Canaccord Genuity issued bullish ratings and price targets exceeding $200. However, others, including JPMorgan and Goldman Sachs, have raised concerns over the company’s lofty valuation following a sharp post-IPO price surge.

Circle's pursuit of a national trust bank charter underscores its commitment to regulatory compliance and its strategic positioning ahead of impending stablecoin legislation. By aligning with federal oversight and enhancing its infrastructure, Circle aims to solidify USDC's role in the evolving digital financial landscape.