Stablecoin firm Circle has applied to create a national trust bank, further solidifying its position in the mainstream after its blockbuster IPO last month.
The company has submitted an application to the Office of the Comptroller of the Currency (OCC) to establish a new trust institution called First National Digital Currency Bank, N.A. If approved, this charter would allow Circle to act as a custodian for its own reserves and hold crypto assets, including tokenized stocks and bonds, on behalf of institutional clients. Currently, Circle’s reserves are held in custody at BNY and managed by BlackRock.
Circle co-founder, chairman, and CEO Jeremy Allaire stated, “By applying for a national trust charter, Circle is taking proactive steps to further strengthen our USDC infrastructure. We will align with emerging US regulation for the issuance and operation of dollar-denominated payment stablecoins, enhancing the reach and resilience of the US dollar, and supporting the development of crucial, market-neutral infrastructure for the world’s leading institutions.”