Circle Internet Group announced that the Office of the Comptroller of the Currency has granted it conditional approval to establish a national trust bank, First National Digital Currency Bank, N.A. The approval, received on December 12, 2025, allows Circle to operate a federally regulated trust bank that will oversee the management of the USDC reserve on behalf of its U.S. issuer.
The conditional approval is a critical step toward full compliance with the July 2025 GENIUS Act, which requires stablecoin issuers to maintain reserves in a trust bank. By securing the charter, Circle can now place the USDC reserve—primarily held in short‑dated U.S. Treasuries and cash deposits—under the oversight of a federally regulated institution, thereby meeting the Act’s custody and transparency mandates.
Beyond regulatory compliance, the new charter positions Circle to expand its product offering. The trust bank will enable the company to provide fiduciary digital‑asset custody and related services to institutional clients, extending its platform beyond stablecoin issuance into broader financial infrastructure. This aligns with Circle’s strategy to deepen its role as a trusted provider of digital‑asset infrastructure.
"Establishing this trust bank deepens Circle’s longstanding commitment to the highest standards of trust and compliance," said Jeremy Allaire, co‑founder, chairman and CEO. Allaire emphasized that the move reflects the company’s focus on operating under rigorous regulatory oversight while building infrastructure that supports the global use of USDC.
The announcement was met with a cautious market reaction, as investors weighed the conditional nature of the approval against the broader regulatory environment for digital assets. While the approval signals progress, the conditional status means final approval remains pending.
Circle is not alone in pursuing a national trust bank charter. Ripple and other digital‑asset firms have also received conditional approval from the OCC, indicating a growing trend of fintech companies seeking federal banking status to support stablecoin operations. The regulatory landscape is evolving, and Circle’s charter places it among the first to secure a federally regulated trust bank for a stablecoin issuer.
In the long term, the approval strengthens the safety and regulatory oversight of USDC, the world’s largest regulated stablecoin, and positions Circle to capture new institutional demand for fiduciary custody services. The move is a foundational step that could broaden the company’s revenue base and reinforce its leadership in the digital‑asset ecosystem.
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