TLDR:
Circle’s trust bank won’t take deposits or issue loans, focusing only on custody.
The bank will primarily custody tokenized assets, not traditional cryptocurrencies.
Circle’s OCC application coincides with its IPO and stablecoin bill momentum.
Approval would make Circle the second digital firm to gain a U.S. trust bank license.
Circle is taking a major step to expand its role in the financial system by applying for a national trust bank charter. If approved, the new entity will operate as First National Digital Currency Bank, N.A., giving Circle direct control over its stablecoin reserves.
The move follows Circle’s recent public debut, which pushed its valuation to nearly $18 billion. This development also positions the company to meet anticipated regulatory requirements in the digital asset space.
The timing aligns with increasing momentum in Congress around stablecoin legislation.
Circle Moves Toward Federal Banking Charter
According to Reuters, Circle’s application with the U.S. Office of the Comptroller of the Currency (OCC) marks a shift toward deeper regulatory integration. The new trust bank would not offer traditional banking services such as taking deposits or issuing loans.
Instead, Circle would focus on managing its USDC reserves and providing custody for tokenized assets. CEO Jeremy Allaire stated the initiative reflects the firm’s ongoing efforts to raise transparency and governance standards.
According to Reuters, stablecoin issuer Circle has applied to the U.S. OCC to establish “First National Digital Currency Bank, N.A.” If approved, the charter would allow Circle to self-custody USDC reserves and offer digital asset custody services to institutions, excluding…
— Wu Blockchain (@WuBlockchain) June 30, 2025
Circle currently stores its reserves at major financial institutions, including BNY Mellon, and uses BlackRock to manage assets such as Treasury bills and cash.
If approved, the trust bank status would enable Circle to bring some of that custody in-house, while retaining relationships with external partners.
The proposed trust bank will allow Circle to offer digital asset custody services, primarily for institutions. However, Allaire clarified that the company plans to prioritize custody of tokenized real-world assets like stocks and bonds, rather than cryptocurrencies such as Bitcoin or Ethereum.
The application also positions Circle to respond swiftly to pending U.S. legislation. Congress is working to finalize a stablecoin bill that mandates monthly reserve disclosures and strict backing by liquid assets.
The Senate passed the bill earlier in June, and the House is expected to vote this summer. If enacted, the new law could unlock broader adoption of stablecoins in retail and institutional settings.
Public Listing and Market Momentum
Circle’s IPO earlier this month drew strong interest from Wall Street, doubling the firm’s market value. Brokerage firms such as Barclays and Bernstein have initiated coverage with bullish ratings, while JPMorgan and Goldman Sachs issued more cautious outlooks.
Market analysts continue to assess whether Circle’s business model justifies its rapid rise in valuation.
Crypto platform Wu Blockchain also highlighted the OCC application, noting the importance of self-custody in the stablecoin ecosystem. With USDC among the top dollar-backed digital assets, Circle’s trust charter could reshape how institutions engage with tokenized finance.
Allaire said the goal is to move beyond the early adoption phase of digital finance.
Becoming a public company and applying for a national trust charter are steps designed to attract long-term institutional confidence. If successful, Circle may become the second digital asset firm with a U.S. trust bank license, following Anchorage Digital.
The post Circle Seeks U.S. Trust Bank Status to Custody USDC and Tokenized Assets appeared first on Blockonomi.
