Stablecoin issuer Circle has applied to establish a national trust bank in the United States that, among other duties, would oversee the firm’s USDC reserve on behalf of its US issuer
If the application is approved by the US Office of the Comptroller of the Currency (OCC), Circle’s First National Digital Currency Bank would be authorized to operate as a federally regulated trust institution, Circle said in a statement on Monday.
Circles Digital Bank also hopes to strengthen the infrastructure that “supports the issuance and circulation” of USDC (USDC) and offer digital asset custody services to institutional customers, the stablecoin issuer added
Source:Jeremy AllaireNational Trust Banks can’t accept cash deposits or issue loans. However, they can offer custodial services and operate nationally under the oversight of the OCC, rather than having to apply for individual state-based money transmitter licenses or specific digital currency licenses, according to law firm Dave Wright Tremaine
GENIUS Act compliance
Circle said a federally regulated trust charter would also help it meet requirements under the proposed GENIUS Act, which passed the US Senate on June 17 and moved to the House of Representatives, where it will face another vote before possibly becoming law
Circle co-founder and CEO Jeremy Allaire said Circle is taking “proactive steps to further strengthen our USDC infrastructure” and “align with emerging US regulation for the issuance and operation of dollar-denominated payment stablecoins.”
National Trust Bank applications to the OCC are subject to a 30-day comment period, and the regulator usually decides to approve or reject within 120 days after receipt of a complete application
Other crypto firms also eye bank charters
Circle isn’t the only crypto firm hoping to create a national trust bank under the oversight of the OCC
Eleanor Terrett, the host of the Crypto in America podcast, said in an X post on Monday that there are several other crypto firms, including the digital currency wing of financial services giant Fidelity, that are applying for a national bank charter license from the OCC.
Circle has been considering a bank charter since at least 2022 and was also named in The Wall Street Journal report on April 21 as one of several crypto firms considering applying for a bank charter or license.
Related:Circle stock becomes largest component of VanEck’s digital asset index
Anchorage Trust Company became the first crypto firm to receive a license from the OCC in January 2021, converting into Anchorage Digital Bank
Circles’ stock trades flat
Circle Internet Group (CRCL) shares have traded flat in the last trading session, rising 0.48% to $181, Google Finance data shows. In after-hours trading, the stock dropped 1.30% to $178
Circle’s share price was flat during the last trading session. Source:Google Finance After going public, Circle stock made a strong entry into the market on June 5, climbing 167% during its first trading session on the New York Stock Exchange
Magazine:GENIUS Act reopens the door for a Meta stablecoin, but will it work?
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Circle applies for US trust bank charter to manage its USDC reserve
Stablecoin issuer Circle has applied to establish a national trust bank in the United States that, among other duties, would oversee the firm’s USDC reserve on behalf of its US issuer
If the application is approved by the US Office of the Comptroller of the Currency (OCC), Circle’s First National Digital Currency Bank would be authorized to operate as a federally regulated trust institution, Circle said in a statement on Monday.
Circles Digital Bank also hopes to strengthen the infrastructure that “supports the issuance and circulation” of USDC (USDC) and offer digital asset custody services to institutional customers, the stablecoin issuer added
GENIUS Act compliance
Circle said a federally regulated trust charter would also help it meet requirements under the proposed GENIUS Act, which passed the US Senate on June 17 and moved to the House of Representatives, where it will face another vote before possibly becoming law
Circle co-founder and CEO Jeremy Allaire said Circle is taking “proactive steps to further strengthen our USDC infrastructure” and “align with emerging US regulation for the issuance and operation of dollar-denominated payment stablecoins.”
National Trust Bank applications to the OCC are subject to a 30-day comment period, and the regulator usually decides to approve or reject within 120 days after receipt of a complete application
Other crypto firms also eye bank charters
Circle isn’t the only crypto firm hoping to create a national trust bank under the oversight of the OCC
Eleanor Terrett, the host of the Crypto in America podcast, said in an X post on Monday that there are several other crypto firms, including the digital currency wing of financial services giant Fidelity, that are applying for a national bank charter license from the OCC.
Circle has been considering a bank charter since at least 2022 and was also named in The Wall Street Journal report on April 21 as one of several crypto firms considering applying for a bank charter or license.
Related: Circle stock becomes largest component of VanEck’s digital asset index
Anchorage Trust Company became the first crypto firm to receive a license from the OCC in January 2021, converting into Anchorage Digital Bank
Circles’ stock trades flat
Circle Internet Group (CRCL) shares have traded flat in the last trading session, rising 0.48% to $181, Google Finance data shows. In after-hours trading, the stock dropped 1.30% to $178
Magazine: GENIUS Act reopens the door for a Meta stablecoin, but will it work?