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Crypto — Banking

Stablecoin Issuer Circle Cleared To Operate Trust Bank

The approval allows Circle National Trust to directly manage the reserves backing its USDC stablecoin, which has more than $73 billion in circulation.

,   and  TIPP Staff
2 min read
Pic via @coinbureau

Circle's shares climbed more than 7% after the U.S. Office of the Comptroller of the Currency approved the stablecoin issuer's application to operate as a national trust bank.

The approval allows Circle National Trust to directly manage the reserves backing its USDC stablecoin, which has more than $73 billion in circulation.

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Previously, the company relied on third-party banks and custodians to hold the cash and U.S. Treasury assets supporting the digital currency. However, the charter does not authorize Circle to function as a traditional commercial bank that accepts deposits or issues loans.

According to the report, the approval reflects a broader shift in the cryptocurrency industry toward regulated financial infrastructure. The charter also places Circle under a single national regulator instead of multiple state regulatory frameworks.

The report said competition in the stablecoin market has intensified following the federal regulatory framework established by the GENIUS Act, with major financial institutions and technology companies increasingly launching their own digital dollar initiatives.

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