In an effort to strengthen its position as a leader in the stablecoin industry and increase its custodial capabilities, Circle has formally applied to become a national trust bank in the US following the success of its recent initial public offering (IPO).
The company intends to launch a new institution named First National Digital Currency Bank, pending approval from the Office of the Comptroller of the Currency (OCC). This strategic move aligns with recent legislative efforts in the U.S. to tighten control over stablecoins, particularly through the GENIUS Act currently progressing through Congress.
If granted, the trust bank license would authorize Circle to hold a segment of its USDC reserves and provide services involving tokenized securities like stocks and bonds—though it would exclude support for Bitcoin and Ethereum. Presently, Anchorage Digital remains the only crypto company holding a national trust charter.
Jeremy Allaire, CEO of Circle, described this development as a logical evolution post-IPO. “Securing a national trust charter underscores our ongoing dedication to compliance, trust, and transparency,” he stated.
Shares of Circle (CRCL) ended the recent trading session slightly higher, gaining 0.48% to close at $181, before dipping to $178 in after-hours activity. Earlier this month, the company made waves when its stock skyrocketed by 167% on its first day of trading.
At the same time, Circle’s USDC stablecoin is gaining significant momentum. Shopify has incorporated USDC as a payment method, and Sam Altman’s World Chain is leveraging it as its core transaction system—further cementing confidence in Circle’s growing ecosystem.
As regulatory frameworks become clearer, Circle’s push toward banking could provide a major competitive advantage over rival stablecoin issuer Tether.
