Move comes amid rising Wall Street interest and pending legislation that could push the stablecoin market to $2 trillion
Circle (CRCL), issuer of the USDC stablecoin, has applied to the Office of the Comptroller of the Currency (OCC) for a national trust bank charter, aiming to establish the First National Digital Currency Bank, N.A. The proposed trust bank would give Circle the authority to custody and manage reserve assets for its stablecoins, though it won’t be allowed to accept cash deposits or issue loans.
“Establishing a national digital currency trust bank marks a significant milestone in our goal to build an internet financial system that is transparent, efficient and accessible,” said Circle CEO Jeremy Allaire.
If approved, Circle would join Anchorage Digital as one of the only crypto firms with such a license. Currently, Circle’s stablecoin reserves are held by Bank of New York Mellon and managed by BlackRock. A national charter would provide Circle greater control over these reserves—key as U.S. stablecoin legislation nears.
The application comes at a pivotal moment for the $253 billion stablecoin industry. With legislation such as the GENIUS Act and the Clarity Act expected to reshape the regulatory landscape, major institutions from JPMorgan to Mastercard are positioning themselves to enter the space.
Stablecoins, unlike other cryptocurrencies, are designed to maintain a fixed value and are typically backed 1:1 with cash and Treasuries. Treasury Secretary Scott Bessent recently told lawmakers the U.S. stablecoin market could top $2 trillion by 2028 if legislation is passed.
Circle, which went public earlier this month and is up 470% since its IPO, is widely viewed as a key player in the future of digital finance. Bernstein recently initiated coverage on Circle, calling it a “must-hold” stock, and forecasting the global stablecoin market could grow to $4 trillion in the next decade.
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