USDC Issuer Circle Wins Final OCC Approval to Launch US National Trust Bank
- 2 days ago
- 3 min read
Circle Internet Group has secured final approval from the Office of the Comptroller of the Currency to establish First National Digital Currency Bank, N.A., operating as Circle National Trust, the company said Friday.
The national trust bank charter places Circle National Trust under direct federal oversight by the OCC, the primary regulator for national banks and national trust banks.
Upon opening, the bank will offer fiduciary digital asset custody services to Circle and its affiliates. The OCC-approved business plan permits potential future expansion of custody services to a limited number of institutional customers, including banks and regulated derivatives organizations.
Management of the USDC Reserve, a stated objective in Circle's original June 30, 2025 application, is planned as a future capability rather than an initial service.
"Federal oversight of our trust bank sets a new standard for transparency, governance, and scale for Circle's infrastructure," said Jeremy Allaire, co-founder, chairman, and chief executive of Circle said in a statement.
The charter does not permit Circle National Trust to accept cash deposits or make loans.
Circle received conditional approval in December 2025 alongside Ripple, BitGo, Fidelity Digital Assets, and Paxos. Crypto.com and Coinbase have since received conditional approvals of their own, while BitGo secured full OCC approval in December.
The company’s June 2025 filing was followed by a wave of applications from digital asset service providers, including Ripple, Paxos, Coinbase, and Crypto.com. The queue has since expanded to include Trump-backed World Liberty Financial, Nomura-backed Laser Digital, Payoneer, Morgan Stanley, Zerohash, Charles Schwab, Citadel-backed EDX, Kraken parent Payward, and Catena Labs.
Anchorage Digital Bank had been the only crypto firm holding a national trust charter prior to the OCC's recent approvals, granted in 2021.
Circle became the first company to receive a BitLicense from the New York Department of Financial Services in 2015 and holds licenses in the UK, Singapore, and Bermuda. In 2024, it became the first global stablecoin issuer to comply with the EU's Markets in Crypto-Assets framework.
USDC Overview
Circle issues USDC, a stablecoin redeemable 1:1 for U.S. dollars. As of July 9, 2026, USDC in circulation stood at $73.2 billion, with reserves of $73.4 billion held in cash and cash-equivalent assets. The majority of reserves are invested in the Circle Reserve Fund (USDXX), an SEC-registered 2a-7 government money market fund, with daily third-party reporting available via BlackRock.
Key features
| 100% backed by highly liquid cash and cash-equivalent assets
| Monthly reserve attestations conducted by a Big Four accounting firm
| Native issuance on 34 blockchain networks
| Redeemable 1:1 for U.S. dollars through Circle Mint (institutional access only)
Pros and cons
Pros:
Regulatory compliance: Most licensed stablecoin company globally with licenses in the U.S., UK, Singapore, EU, Bermuda, and Abu Dhabi
Transparency: Regular third-party attestations and public reserve reporting
Institutional adoption: USDC carried approximately $1.21 trillion in adjusted stablecoin volume in June 2026, representing 67% of the total
Global accessibility: Available across 34 blockchain networks, supporting near-instant, low-cost settlement
Cons:
No deposit insurance: USDC holdings are not insured by the FDIC
Centralized issuance: Circle maintains the ability to freeze or block addresses associated with illegal activity.
Third-party price fluctuations: Value on external platforms can deviate from the $1 peg due to market conditions beyond Circle's control.
Limited direct access: Circle Mint is restricted to institutional clients; individuals access USDC through exchanges and digital wallets.
This content is for informational purposes only and should not be taken as solicitation, recommendation, endorsement or investment advice. It is crucial for you to conduct your own research and due diligence to make informed decisions, as any investment will be your sole responsibility. Please review our disclaimer and risk warning.
