Circle Seeks Approval to Launch National Trust Bank to Oversee USDC Reserves

Stablecoin issuer Circle has taken a significant step toward expanding its financial footprint by applying to establish a national trust bank called First National Digital Currency Bank, N.A.

Circle Advances U.S. Financial System Integration with Digital Assets

According to a recent announcement, if the application is approved, First National Digital Currency Bank, N.A. will be allowed to operate as a trust institution under federal regulation. Under the management of the Comptroller of the Currency (OCC) oversight, the institution would manage the USDC Reserve on behalf of Circle’s U.S. issuer. 

“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,” said Circle Co-Founder, Chairman, and CEO Jeremy Allaire. 

The announcement further revealed that an approval would help make the system that issues and moves USDC more secure and stable. It will also provide digital asset custody services to institutional clients. 

In addition, having a federal trust charter would position Circle to meet regulatory standards under the proposed GENIUS Act, an essential step toward incorporating digital assets into the broader U.S. financial landscape. 

“By applying for a national trust charter, Circle is taking proactive steps to further strengthen our USDC infrastructure. 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 added.

Circle Extends Regulatory Leadership with OCC Application

Meanwhile, by applying to the OCC, Circle demonstrates its global leadership as one of the first companies to seek significant regulatory authorizations across multiple jurisdictions worldwide. 

In 2024, Circle set a global precedent by becoming the first stablecoin issuer to achieve compliance with the European Union’s landmark MiCA regulation. Then, in April 2025, Circle also received in-principle approval from the Financial Services Regulatory Authority at Abu Dhabi Global Market to operate as a licensed money services provider. 

Earlier in May, Circle launched its native USDC on Sonic Labs, an Ethereum Virtual Machine (EVM) layer-1 blockchain. The move replaced the existing $500 million in bridged USDC. CoinTab reported that the development preserves full access to liquidity and compatibility across the Sonic ecosystem.

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