Circle, the issuer of the USDC stablecoin, has announced its intention to apply for a national trust bank license from the Office of the Comptroller of the Currency (OCC) shortly after its successful IPO. The proposed First National Digital Currency Bank, N.A. aims to manage the reserves backing USDC, which has a market cap exceeding $61 billion. This federal trust charter would enhance compliance with the recently passed GENIUS Act, aimed at regulating stablecoins. Circle's co-founder and CEO, Jeremy Allaire, emphasized that this move is a significant step towards creating a transparent and efficient internet financial system. While the charter would not permit traditional banking activities like loans or cash deposits, it would enable Circle to manage its reserves under OCC supervision. The company’s stock, CRCL, has seen fluctuations, recently dropping nearly 28% after an initial surge post-IPO, with JP Morgan setting a price target of $80, indicating concerns about overvaluation. Read more AI-generated news on: https://app.chaingpt.org/news

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