Circle Internet Group has received final approval from the U.S. Office of the Comptroller of the Currency to establish a national trust bank.
Summary
- Circle secured final OCC approval to establish a federally supervised national trust bank in America.
- The bank will initially provide digital asset custody services to Circle and affiliated companies only.
- Future plans may include institutional custody and management of reserves backing the USDC stablecoin directly.
The new institution will operate as Circle National Trust. Its legal name will remain First National Digital Currency Bank, N.A., according to Circle’s July 10 announcement.
Circle National Trust gains federal approval
The OCC approval places Circle National Trust under direct federal supervision. The regulator oversees national banks and national trust banks across the United States.
Circle said the bank will initially offer fiduciary digital asset custody services to Circle and its affiliates. It will not operate like a traditional commercial bank that accepts deposits and provides consumer loans.
However, Circle National Trust may later provide custody services to a limited group of institutional clients. Its approved business plan names banks, financial institutions and regulated derivatives organizations as possible customers.
The company said the charter could also support future management of the reserves backing USD Coin. Still, Circle has not confirmed when or whether the bank will assume that role.
Circle co-founder and CEO Jeremy Allaire described the approval as “a defining step” in bringing blockchain systems into the U.S. financial sector. He said federal supervision would provide clearer governance for institutions using public blockchains.
USDC reserve management remains a future plan
USDC currently operates through Circle’s existing regulated entities and reserve arrangements. Circle National Trust’s planned role would add a federally supervised custody layer to that structure.
Circle said future reserve management through the trust bank could provide more direct oversight of assets backing USDC. The stablecoin is designed to maintain a value of $1 through reserves that include cash and short-term U.S. government securities.
The company added that the national charter would align its infrastructure with the fiduciary standards applied to traditional trust banks. These institutions safeguard assets for clients but do not usually provide the full range of services offered by commercial banks.
Meanwhile, the OCC granted Circle and several other digital asset companies conditional charter approvals in December 2025. The group included Ripple, Paxos, BitGo and Fidelity Digital Assets.
Circle had to meet the OCC’s pre-opening conditions before receiving final authorization. The company submitted its original application on June 30, 2025.
Approval follows wider US stablecoin regulation
Circle’s approval follows the introduction of a federal framework for payment stablecoins. The GENIUS Act established reserve, reporting and compliance rules for approved stablecoin issuers.
As reported by crypto.news, stablecoin use has expanded across payments and settlement, with USDC gaining adoption among regulated financial firms and payment companies.
Circle said the charter supports USDC’s use in payments, capital markets and settlement. However, a national trust charter does not make USDC a bank deposit, nor does it provide federal deposit insurance to token holders.
The charter also does not mean Circle National Trust can immediately offer every service listed in its long-term plans. New products remain subject to regulatory requirements, internal controls and further operational work.
Crypto trust charters face banking industry criticism
Circle’s approval comes as banking groups question the OCC’s decision to grant national charters to crypto companies.
The Bank Policy Institute considered legal action over the regulator’s charter policy. The group argued that crypto trust banks could offer bank-like products without facing the same rules as full-service lenders.
Other banking organizations have also asked the OCC to limit or revise its approach. They have raised concerns about financial stability, consumer protection and the legal scope of national trust charters.
Circle has maintained that federal supervision will strengthen its governance and compliance standards. The company also holds regulatory approvals in the European Union, Singapore, Bermuda, Canada, the United Kingdom and Abu Dhabi.
Circle became the first company to receive a New York BitLicense in 2015. It later became one of the first major stablecoin issuers to comply with the European Union’s Markets in Crypto-Assets framework.
