Key Takeaways:
- Circle has applied for a US trust bank license to custody USDC reserves and offer tokenized asset services.
- The move comes as Congress advances key stablecoin regulation bills (GENIUS Act, CLARITY Act).
- Circle’s IPO and new trust entity position it at the forefront of regulated digital asset infrastructure.
Stablecoin issuer Circle has formally applied for a US trust bank license, a strategic move that could reshape the company’s role in the digital finance landscape. Coming on the heels of its successful IPO, the application signals Circle’s ambitions to lead in regulated financial infrastructure as stablecoin legislation looms in the United States.
New Entity to Custody USDC and Tokenized Assets
According to a report by Reuters, Circle plans to establish First National Digital Currency Bank, a new entity that would serve as a national trust bank regulated by the Office of the Comptroller of the Currency (OCC). If approved, the trust bank would custody a portion of USDC reserves internally, while retaining existing relationships with major financial institutions for the remainder.
Interestingly, Circle’s custodial services will focus not on cryptocurrencies like Bitcoin or Ethereum, but rather on tokenized financial assets, including stocks and bonds. This sets Circle apart in a field where Anchorage Digital remains the only crypto-native entity holding such a license.
Preparing for Stablecoin Regulation in the US
Circle’s move comes as lawmakers ramp up efforts to bring clarity to the stablecoin market. The GENIUS Act, which passed in the Senate, is now in the House of Representatives, where lawmakers are discussing a potential merger with the CLARITY Act.
CEO Jeremy Allaire noted that the company’s IPO and trust license application are strategic plays in anticipation of a new legal framework. “Becoming a national trust company is again a continuation of our mission to meet the highest standards of governance and compliance,” he said.
Also Read: Circle (CRCL) Stock Soars, IPO Sparks $3B Employee Loss
Circle Rides Regulatory Momentum and Institutional Adoption
With this proactive regulatory positioning, Circle is already seeing results. World Chain, a blockchain project backed by Sam Altman, has adopted USDC for payments, and Shopify has integrated the stablecoin to support merchants.
As Circle inches closer to rivaling Tether in market dominance, its push for trust, transparency, and institutional-grade services is setting a precedent for other Web3 companies eyeing mainstream legitimacy.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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