Circle applies for a U.S. trust bank to manage USDC reserves
The post Circle applies for a U.S. trust bank to manage USDC reserves appeared on BitcoinEthereumNews.com. Circle Internet Group the issuer of the USDC stablecoin, has formally applied for a national trust bank charter from the U.S. Office of the Comptroller of the Currency. The move was made public via a June 30 press release by Circle Internet Group. If approved, the new entity, First National Digital Currency Bank, N.A., would be authorized to manage the reserves backing USD Coin (USDC) and offer digital asset custody services to institutional clients under federal oversight. In doing so, Circle would be able to function as a trust institution subject to federal regulation, joining Anchorage Digital as one of the few cryptocurrency companies licensed to do so. While it will not accept deposits or issue loans like a traditional bank, the trust charter would allow Circle to hold crypto and tokenized financial instruments on behalf of clients. It also marks a significant step in Circle’s push to integrate stablecoins into the regulated U.S. financial system. The trust charter application comes as U.S. lawmakers advance the GENIUS Act, a proposed federal framework for stablecoin issuers, and comes after Circle’s successful public listing on the New York Stock Exchange. Circle’s application aligns with expected requirements under the bill, which would mandate full backing by liquid assets and transparent monthly reserve disclosures. The GENIUS Act passed the Senate earlier this month and is awaiting House approval, with President Trump expected to sign it into law. Currently, Circle’s USDC reserves, composed of short-term U.S. Treasury bills, repurchase agreements, and cash, are held at institutions like BNY Mellon and managed by BlackRock. With the creation of a trust bank, Circle plans to take a more direct role in overseeing reserve management, though some assets will remain with external custodians. Circle would be able to offer more custody options than just stablecoins thanks to the…
The post Circle applies for a U.S. trust bank to manage USDC reserves appeared on BitcoinEthereumNews.com.
Circle Internet Group the issuer of the USDC stablecoin, has formally applied for a national trust bank charter from the U.S. Office of the Comptroller of the Currency. The move was made public via a June 30 press release by Circle Internet Group. If approved, the new entity, First National Digital Currency Bank, N.A., would be authorized to manage the reserves backing USD Coin (USDC) and offer digital asset custody services to institutional clients under federal oversight. In doing so, Circle would be able to function as a trust institution subject to federal regulation, joining Anchorage Digital as one of the few cryptocurrency companies licensed to do so. While it will not accept deposits or issue loans like a traditional bank, the trust charter would allow Circle to hold crypto and tokenized financial instruments on behalf of clients. It also marks a significant step in Circle’s push to integrate stablecoins into the regulated U.S. financial system. The trust charter application comes as U.S. lawmakers advance the GENIUS Act, a proposed federal framework for stablecoin issuers, and comes after Circle’s successful public listing on the New York Stock Exchange. Circle’s application aligns with expected requirements under the bill, which would mandate full backing by liquid assets and transparent monthly reserve disclosures. The GENIUS Act passed the Senate earlier this month and is awaiting House approval, with President Trump expected to sign it into law. Currently, Circle’s USDC reserves, composed of short-term U.S. Treasury bills, repurchase agreements, and cash, are held at institutions like BNY Mellon and managed by BlackRock. With the creation of a trust bank, Circle plans to take a more direct role in overseeing reserve management, though some assets will remain with external custodians. Circle would be able to offer more custody options than just stablecoins thanks to the…
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