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Circle Plans to Establish a National Trust Bank Following Wall Street Introduction — Implications Explained
Circle, the company responsible for the USDC stablecoin, is advancing into regulated finance.
Following a public listing that valued the firm at nearly $18 billion, Circle has submitted an application to establish itself as a national trust bank in the United States, as reported by Reuters on Tuesday.
If the Office of the Comptroller of the Currency grants approval, the new entity, named First National Digital Currency Bank, N.A., would enable Circle to serve as a custodian for its reserves and provide secure digital asset services to institutional clients.
However, in contrast to conventional banks, it would not be authorized to accept cash deposits or extend loans.
Exclusive: Circle applies for US trust bank license after bumper IPO https://t.co/bnsIZpO7Wq https://t.co/bnsIZpO7Wq
— Reuters (@Reuters) July 1, 2025
Circle Plans Hybrid Reserve Custody Model
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Instead, the trust charter would permit Circle to oversee the reserves that support its stablecoin, which consist of short-term US Treasury bills and cash, currently held at BNY Mellon and managed by BlackRock. Some of these assets will continue to be with existing partners even if the new bank becomes operational.
“We’re transitioning from the early-adopter phase of this technology into the mainstream,” Allaire stated to Reuters. “As a public company, and now, hopefully if we are successful in obtaining approval from the OCC as a national trust, that will provide us with a foundation that the world’s leading institutions will be comfortable building on.”
Senate Bill Pushes Stablecoin Rules Forward
Circle intends to concentrate on the custody of tokenized assets such as stocks and bonds on blockchain platforms, rather than cryptocurrencies like Bitcoin and Ether. This focus aligns with broader trends, as financial institutions increasingly investigate blockchain to modernize traditional markets.
The timing of Circle’s initiative is noteworthy. Earlier this month, the Senate approved a stablecoin bill that would mandate issuers to maintain full reserves and publicly disclose them each month. The House is anticipated to vote on the bill in the upcoming weeks, and President Trump has expressed support for such regulation.
If enacted, the legislation could validate stablecoins in the eyes of more traditional businesses and facilitate broader usage in payments and commerce. Circle, which already plays a pivotal role in the stablecoin market, is preparing to adapt to this moment with a more regulated and institution-friendly framework.
Wall Street analysts began their coverage of Circle this week with predominantly positive evaluations. Firms such as Barclays, Bernstein, and Canaccord Genuity issued buy ratings, although others like JPMorgan and Goldman Sachs raised potential valuation concerns following the stock’s significant post-IPO increase.
The post Circle Moves to Launch a National Trust Bank After Wall Street Debut — Here’s What That Means appeared first on Cryptonews.
