Key Takeaways
- USDC developer Circle is seeking a national trust bank charter to manage its USDC reserves and offer tokenized asset custody.
- If approved, the license would help Circle meet the expected requirements of the proposed stablecoin legislation
- The move comes as the US stablecoin legislation progresses in Congress and is expected to be signed into law by President Trump.
Stablecoin USDC developer Circle Internet Group has filed an application with the Office of the Comptroller of the Currency (OCC) for a national charter, aiming to establish a national trust bank called First National Digital Currency Bank, N.A.
According to a June 30 press release, if approved by the OCC, the new bank would oversee the management of the USDC stablecoin reserve on behalf of Circle’s US issuer. Additionally, First National Digital Currency Bank, N.A., would offer digital asset custody services to institutional customers.
Enable Circle to Directly Custody USDC Reserves
The company’s move to establish the proposed National Digital Currency Bank comes hot on the heels of its June 5 IPO, which enabled Circle to raise an initial market capitalization of around $6 billion. With the firm’s stock now trading at around $181, Circle is now valued at around $44 billion.
The proposed cryptocurrency bank, First National Digital Currency Bank, N.A., would enable Circle to directly custody USDC reserves and provide digital asset custody services to institutional clients. However, it would not handle cash deposits or lending. Commenting on the move, Circle co-founder, chairman and CEO Jeremy Allaire stated:
“Establishing a national digital currency trust bank of this kind marks a significant milestone in our goal to build an internet financial system that is transparent, efficient, and accessible.”
Meet the Expected Stablecoin Legislation Requirements
BlackRock and BNY Mellon currently manage Circle’s USDC reserves. While the new trust bank would take over the management of the reserves, Circle intends to maintain relationships with major banks for portions of its holdings. Allaire indicated the bank would concentrate on tokenized stocks and bonds rather than digital assets like Bitcoin or Ether.
For Circle, the approval of the charter would also help it meet the expected requirements of the proposed stablecoin legislation, the GENIUS Act. Circle CEO Jeremy Allaire further stated:
“By applying for a national trust charter, Circle is taking proactive steps to strengthen our USDC infrastructure further […] further; we will align with emerging U.S. regulation for the issuance and operation of dollar-denominated payment stablecoins, which we believe can enhance the reach and resilience of the U.S. dollar, and support the development of crucial, market neutral infrastructure for the world’s leading institutions to build on.”
Proactive Regulatory Approach
Over the last few years, Circle has kept a proactive regulatory approach. The firm was the first recipient of New York’s BitLicense in 2015 and became a pioneer global issuer to meet the European MiCA rules in 2024. In April 2025, the company received in-principal approval to operate in Abu Dhabi. Circle went public on the New York Stock Exchange on June 5, 2025, with its IPO listed at $31 per share but has since surged to $180.
Conclusion
The proposed expansion of Circle to a National digital currency bank comes at a time when US lawmakers are advancing regulation on stablecoins. The GENIUS Act, which has already passed the Senate, is expected to be cleared in the House this summer. The law requires stablecoins to maintain liquid asset backing and provide monthly reserve disclosures. President Trump is anticipated to sign the measure into law.
Frequently Asked Questions
What makes USDC a stablecoin?
USDC is a fully reserved stablecoin, a type of cryptocurrency designed to maintain a steady value. Unlike other cryptocurrencies that fluctuate in price, USDC is designed to maintain price equivalence to the US dollar.
Who controls USDC?
In August 2023, Circle and Coinbase dissolved the Centre Consortium, the entity responsible for managing USDC since its inception in 2018. This decision granted Circle full governance over USDC.
What are the use cases of USDC?
USDC is a digital dollar that enables the storage of stable value, efficient global payments, remittances, and participation in decentralized finance applications, all while maintaining the price stability of the US dollar combined with the speed and accessibility of blockchain technology.
