Circle Applies for US National Trust Bank License

• Lyla Velez
• July 1, 2025
• Policy
• 0 Comments

Circle’s proactive move aims to align with U.S. regulations, potentially strengthening USDC’s position in the financial ecosystem.

Circle, issuer of USDC and EURC, seeks an OCC charter to become a federally regulated trust bank. This step looks to integrate USDC into the banking system, enhancing market-neutral infrastructure for major institutions. The initiative aligns under CEO Jeremy Allaire, who reinforces Circle’s vision to support dollar-denominated payment stablecoins.

This application may boost USDC’s institutional trust, increasing capital inflows and supporting custodial and reserve services. The impact extends indirectly to DeFi protocols reliant on USDC, potentially influencing liquidity and trading volumes across Ethereum and other blockchains. Circle’s move is expected to reinforce USDC’s role in financial markets, as seen in past approvals for Anchorage Digital and Paxos. Their regulatory strides set a precedent for broader institutional cryptocurrency use.

Jeremy Allaire, Co-founder and CEO, Circle, said, “By applying for a national trust charter, Circle is taking proactive steps to further strengthen our USDC infrastructure. 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.”

Circle’s expansion could result in notable changes for institutional adoption and regulatory clarity for digital assets. Historical examples have shown increased credibility and utilization for related stablecoins, with implications for broader market engagement.