Circle Internet Group (CRCL) took a significant step toward becoming a federally regulated digital currency bank by applying to the U.S. Office of the Comptroller of the Currency (OCC) to establish the First National Digital Currency Bank, N.A. This national trust bank charter, if approved, would allow Circle to directly manage the reserves backing its USD-pegged stablecoin USDC and provide secure custody services for institutional clients such as pension funds, asset managers, and corporate treasurers.
The move is part of Circle's broader strategy to position itself for compliance with upcoming stablecoin regulations, including the anticipated GENIUS Act which mandates stablecoin issuers hold segregated reserves in federally regulated institutions. Currently, USDC reserves are held by third-party custodians such as BNY Mellon and managed by BlackRock. The trust bank would reduce Circle's reliance on these custodians while maintaining some assets with traditional banks to ensure redundancy.
Circle has a demonstrated regulatory-first approach, having acquired the first BitLicense in New York in 2015, complying with the EU's MiCA regulation in 2024, and receiving approval to operate as a money services provider in Abu Dhabi in 2025. This OCC application extends their licensing strategy to the federal level in the U.S., underscoring their commitment to transparency, efficiency, and regulatory compliance.
Following the announcement, Circle’s stock surged 2.55% in after-hours trading, reflecting market optimism about the move. The company reported over $32 billion in USDC circulation at the end of May 2025 and aims to support wider stablecoin integration and adoption in mainstream financial services. A federal framework for stablecoins recently passed the U.S. Congress and is expected to become law soon, further validating Circle’s timing and strategic direction for growth and institutional trust.