Circle Receives OCC Approval for First National Digital Currency Bank
Quick Look
- Circle, the issuer of the USDC stablecoin, has received final approval from the US OCC to establish First National Digital Currency Bank (FNDCB), operating as Circle National Trust.
- This federally regulated trust institution will initially offer digital asset custody services for Circle and its affiliates, with potential future expansion to institutional clients.
AI-generated summary
Why It Matters
Circle, the issuer of the USDC stablecoin, has received final approval from the US Office of the Comptroller of the Currency to establish a national trust bank, Circle National Trust. This move integrates blockchain technology into the US financial system.
USDC stablecoin issuer Circle on Friday announced it received final approval from the US Office of the Comptroller of the Currency (OCC) to establish First National Digital Currency Bank (FNDCB), a national trust bank that will operate under the name Circle National Trust.
“OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the US financial system,” Circle CEO Jeremy Allaire said.
The approval comes roughly a year after Circle applied for the charter in June 2025, allowing Circle to establish a federally regulated trust institution and expand its digital asset custody infrastructure.
Circle’s new bank begins with limited custody scope
Circle National Trust will initially provide fiduciary digital asset custody services for Circle and its affiliated companies, according to the company’s approved business plan.
The bank could later expand those services to a limited group of institutional customers, including banks and other financial institutions such as regulated derivatives firms, if demand develops.
Source: Circle
The trust bank structure could also enable future management of the USDC Reserve, bringing those operations under federal oversight if implemented.
The OCC approval adds another layer to Circle’s growing regulatory footprint across major financial markets.
Circle said it became the first company to receive a BitLicense from the New York Department of Financial Services in 2015, and later became the first global stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets Regulation (MiCA) framework in 2024.
Related: Standard Chartered, Circle bring USDC minting onto banking rails
The company has also secured regulatory approvals in markets including the United Kingdom, Singapore, Bermuda, Canada and Abu Dhabi as it expands its USDC infrastructure globally.
At publishing time, USDC is the second-largest stablecoin by market capitalization at $73.3 billion, according to CoinGecko. Over the past year, its market cap has increased 16.7% from $62.8 billion, though it has declined 2.5% year-to-date from $75.2 billion.
Circle Internet Group’s (CRCL) stock rose around 16% in pre-market trading on Friday following the announcement, climbing above $73 after closing the previous session at $63, according to Yahoo Finance data.
What to Watch
AI outlook — possibilities, not facts
Circle National Trust will expand fiduciary digital asset custody services to a limited group of institutional customers.
Possible · Medium term
Open Questions
- When will Circle National Trust expand services to institutional customers?
- What will be the specific oversight for the USDC Reserve management?
- How will this impact competition in the digital asset custody market?
