Just a few weeks after the high-profile IPO, USDC issuer Circle has announced it is seeking approval from the Office of the Comptroller of the Currency (OCC) to establish a national trust bank.
Goals and Legal Significance
Circle is seeking to establish First National Digital Currency Bank, N.A., which will be under the supervision of the OCC and manage the reserves backing $USDC – the second largest stablecoin by market capitalization with over $61 billion in circulating tokens pegged to the dollar.
According to Circle, the federal trust license will help USDC comply with the GENIUS Act on stablecoins, which was recently passed by the Senate. Jeremy Allaire, co-founder, Chairman, and CEO of Circle, stated that this is "a significant milestone in building a transparent, efficient, and accessible internet financial system." He also emphasized that this will "further enhance the USDC infrastructure" and "align with emerging U.S. regulations for the issuance and operation of dollar-backed payment stablecoins."
Limitations and Market Position
Although certain banking activities such as lending or accepting cash deposits will not be undertaken, this license will allow #Circle to effectively manage its reserves (under the supervision of the OCC) and custody assets for institutions. The cryptocurrency company Anchorage Digital was the first digital asset entity to receive a license from the OCC in 2021. Currently, BlackRock is managing USDC reserves, which are held by BNY.
Circle's CRCL stock ended trading on July 1, 2025, up less than one percent at $181.29. Despite a booming IPO and the first few weeks of trading skyrocketing from $31 to a peak of $299, the stock has sharply declined nearly 28% in the past week. JPMorgan Chase & Co. recently set a target price of only $80 for CRCL, suggesting that the stock is currently overvalued. #anhbacong