The Office of the Comptroller of the Currency (OCC) has granted conditional approval to Circle Internet Financial to operate as a national trust bank in the United States. The approval, dated December 12, 2025, allows Circle to establish the First National Digital Currency Bank, N.A., which will oversee the reserves of its USDC stablecoin under new federal regulatory standards.
This decision marks a significant regulatory milestone, reinforcing Circle's compliance framework and aligning with the GENIUS Act, which encourages stablecoin reserves to be held on-balance sheet. Circle CEO Jeremy Allaire emphasized the move deepens the company's commitment to trust and compliance, stating, "Establishing a national digital currency trust bank of this kind deepens Circle’s longstanding commitment to the highest standards of trust and compliance... This important milestone will give the world’s leading institutions greater clarity and confidence to build on Circle’s platform."
The approval is expected to enhance the stability and credibility of USDC, the second-largest stablecoin with a market capitalization of $78.5 billion. By bringing USDC reserves under federal oversight, the move aims to provide a safer environment for stakeholders and could significantly boost institutional adoption for on-chain settlements and payments. The development is seen as part of a broader trend of digital asset integration into traditional banking, with companies like Ripple, BitGo, and Paxos also involved in similar charter shifts.
However, the move has also drawn scrutiny. Greg Baer, CEO of the Bank Policy Institute, raised questions, commenting, "This leaves substantial unanswered questions … chiefly, whether the requirements the OCC has outlined for the applicants are appropriately tailored to the activities and risks in which the trust will engage." The immediate market impacts remain speculative as the industry monitors how this approval will affect competition within the evolving crypto banking landscape.
