Stablecoin issuer Circle Internet Group has applied to the Office of the Comptroller of the Currency to establish First National Digital Currency Bank, a national trust bank.
The charter application, if approved, would enable First National Digital to operate as a federally regulated trust institution under OCC oversight and manage the USDC Reserve on behalf of Circle's U.S. issuer, the firm said Monday. Additionally, the new trust bank can offer digital asset custody services to institutional customers, thereby bolstering the infrastructure supporting USD Coin.
“Establishing a national digital currency trust bank of this kind marks a significant milestone in our goal to build an internet financial system that is transparent, efficient and accessible,” Circle co-founder, chairman and CEO Jeremy Allaire said in a statement.
Circle’s national trust charter is a step toward strengthening its USDC infrastructure, he added.
“Further, we will align with emerging U.S. regulation for the issuance and operation of dollar-denominated payment stablecoins, which we believe can enhance the reach and resilience of the U.S. dollar, and support the development of crucial, market neutral infrastructure for the world’s leading institutions to build on,” Allaire noted.
A national trust charter serves a distinctly different purpose compared to a traditional national bank charter, Patrick Hanchey, a partner at law firm Alston & Bird’s financial services group, explained. The national trust charter does not permit deposit taking or lending, which are the two primary functions of a traditional bank. While the trust charter’s powers are more limited, it comes with fewer capital requirements and a more tailored regulatory structure.
“Circle is likely trying to expand its capabilities and product offerings (such as custody services relating to digital assets), while establishing itself as a trusted, reliable link between the digital asset economy and traditional finance,” Hanchey said via email.
Circle’s OCC application follows a blockbuster debut on the New York Stock Exchange last month under the ticker symbol CRCL. It raised more than $1 billion, opening at $82.84 a share – a 167% jump from its IPO price. Circle filed IPO paperwork in May.
The company priced its common stock at $31 per share, above its target range of $27-$28, bringing its valuation to $18 billion – up from the initial nearly $6 billion valuation. However, trading opened at $69 a share.
Circle’s debut marks the largest cryptocurrency IPO since Coinbase Global went public in 2021.
Though Circle’s two recent moves are “technically unrelated,” Hanchey noted, “the success of Circle’s IPO combined with the Trump Administration’s friendly posture towards digital assets spurred on Circle’s trust charter application.”
Some other financial technology companies seek to become national banks based on the digital asset stance of the Trump administration. Circle’s application positions it to meet expected requirements under the Guiding and Establishing National Innovation for U.S. Stablecoins Act, the company noted. The charter would help integrate digital assets into the broader U.S. financial system, Circle said.
The GENIUS Act, passed by the Senate on June 17, with a bipartisan vote of 68-30, represents the first federal framework specifically designed to regulate stablecoins.
Ripple Labs has applied to the OCC to become a national bank, Bloomberg reported. The payments and stablecoin firm is seeking approval to form Ripple National Trust Bank, a spokesperson for the company confirmed to the publication. The firm has applied for a Federal Reserve master account, aiming to gain further access to the traditional U.S. financial system.
Last month, London-based fintech Wise also applied for a national trust charter to form Wise National Trust, a bank based in Austin, Texas. The money transfer platform’s proposal to establish a non-depository national trust bank aligns with Wise’s long-term goal to expand its global network of partnerships and direct payment integrations, the firm said.
A spokesperson for Wise confirmed the application but declined to comment further.
