Circle Obtains New York Trust Charter from NYDFS
Quick Look
- Circle's subsidiary, Circle Internet Trust Company LLC, has been granted a limited purpose trust charter by the New York Department of Financial Services (NYDFS), allowing it to offer fiduciary services in New York.
- This marks a significant regulatory clarity for the stablecoin issuer.
AI-generated summary
Why It Matters
Circle previously received the first NYDFS BitLicense in 2015, allowing it to conduct virtual currency business in New York.
Circle said Friday that the New York Department of Financial Services (NYDFS) has granted a limited purpose trust charter to its subsidiary, Circle Internet Trust Company LLC.
A limited purpose trust charter is issued under New York Banking Law for institutions that do not have the general power to accept deposits or make loans like traditional banks, according to the NYDFS.
Instead, charter holders may exercise fiduciary powers and conduct activities such as custodial services, investment management, corporate trust, transfer agency and securities clearance. NYDFS also notes that some applicants seek to engage in virtual currency-related activity.
“Earning a New York trust charter has been a longstanding objective for Circle given the regulatory clarity that comes with it,” CEO Jeremy Allaire said in a press release.
Circle was the first company to receive a NYDFS BitLicense in 2015, allowing it to conduct virtual currency business in New York.
The company issues the US dollar-pegged stablecoin USDC, which has a market capitalization of $71.8 billion, making it the second-largest stablecoin behind Tether USDt (USDT) and the fifth-largest cryptocurrency.
