Circle Wins Federal Approval to Launch US National Trust Bank

Circle is no longer relying entirely on outside banks to support the infrastructure behind USDC.

The stablecoin issuer has received final approval from the US Office of the Comptroller of the Currency to establish Circle National Trust, a federally regulated national trust bank that will help oversee the reserves backing its dollar-pegged stablecoin and provide digital asset custody services.

Circle shares rose more than 7% following the announcement, while some premarket reports showed gains reaching double digits as investors welcomed the company’s deeper integration into the regulated US financial system.

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What Circle’s Banking Approval Actually Means

Despite the headlines, Circle is not becoming a conventional commercial bank. Circle National Trust will not be permitted to accept consumer deposits or issue loans. Instead, it will operate as a national trust bank focused on reserve oversight, fiduciary services and digital asset custody.

The new entity will initially serve Circle and its affiliates, with the potential to offer custody services to institutional clients, including banks and other regulated financial firms.

The charter also gives Circle a direct relationship with a single federal banking regulator rather than forcing it to navigate a patchwork of state-level rules.

Circle Takes Greater Control of USDC

Circle National Trust will play a central role in overseeing the assets backing USDC, which has more than $73 billion in circulation.

Until now, Circle has relied on third-party banks and custodians to hold the cash and short-term US Treasury securities supporting the stablecoin. The new structure gives Circle greater control over that reserve infrastructure while placing it under direct OCC supervision.

The move could help Circle strengthen confidence in USDC among financial institutions that require federally regulated custody, clear reserve oversight and stronger fiduciary protections before adopting stablecoins at scale.

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Crypto Firms Move Deeper Into Banking

Circle is part of a wider push by major digital asset companies to become embedded within the regulated financial system.

The OCC previously granted conditional approvals involving Circle, Ripple, BitGo, Fidelity Digital Assets and Paxos, reflecting growing demand for national trust charters among companies offering custody, stablecoin and tokenization services.

For crypto companies, federal charters can provide regulatory clarity and nationwide operating authority. For regulators, they bring major digital asset businesses inside a familiar supervisory structure.

That represents a significant shift from the industry’s earlier focus on building financial applications around the banking system. Increasingly, crypto companies are seeking permission to become part of the infrastructure itself.

Stablecoin Competition Is Intensifying

Circle’s approval arrives as the US stablecoin market enters a more competitive phase.

The passage of the GENIUS Act created a federal framework for payment stablecoins, giving banks, fintech companies and established financial institutions greater confidence to develop their own digital-dollar products.

That clarity could expand the overall market, but it also creates new pressure for Circle. Banks and payment companies may prefer to issue their own stablecoins, allowing them to retain reserve income, payment flows and customer relationships rather than relying on USDC.

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Circle is also facing competition from Open USD, a stablecoin initiative supported by more than 140 companies, including BlackRock, Coinbase, Mastercard, Stripe and Visa. Its structure allows participating companies to share reserve-related economics rather than leaving them with a single issuer.

Traditional Finance Is Building Its Own Blockchain Rails

The race is not limited to stablecoin issuers. Swift has begun rolling out a blockchain-based ledger with 17 major banks, including Citi, HSBC, UBS, Wells Fargo and Standard Chartered, preparing to test tokenized deposits and around-the-clock cross-border payments.

The initiative highlights the growing competition between stablecoin networks and traditional banking infrastructure. Both are working toward the same goal: instant, programmable payments that can operate continuously rather than only during banking hours.

Circle’s new charter gives it a stronger position in that contest.

The company is still not a commercial bank in the traditional sense, but it is becoming something increasingly important: a federally regulated bridge between stablecoins, blockchain payments and the US banking system.