🚨 Circle Applies to Launch First National Digital Currency Bank in the U.S.
Circle, the issuer of $USDC, has officially applied to the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank. If approved, this move would allow Circle to independently manage USDC reserves under full federal regulation.
🔒 Why it matters:
• The trust would give Circle the status of a federally recognized institution, enabling it to operate within the traditional U.S. banking system.
• The move aligns Circle with the Genius Act, a new legislative framework designed to enforce tighter controls on stablecoin issuers.
💼 Circle’s Playbook:
• Institutional Push: Circle aims to scale USDC as a trusted stablecoin for institutions.
• Custody Services: The new trust entity—First National Digital Currency Bank—will handle USDC custody for large clients.
• Partnerships Remain: Circle will still work with BlackRock and BNY Mellon to manage reserves and treasury assets.
🌍 Bigger Picture:
• Circle is expanding USDC’s reach to dominate international markets.
• CEO Jeremy Allaire says the move is about building regulated, accessible financial infrastructure on the internet.
⚖️ The Competitive Race:
• While Tether ($USDT) remains dominant, Circle is leveraging its U.S. compliance edge.
• With firms like Amazon and Mastercard exploring stablecoins, Circle’s early trust-bank setup could be a critical advantage.
📈 $CRCL hit an all-time high of $260 last week, showing investor confidence in Circle’s regulated approach.
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