Circle Secures National Trust Bank Charter, Paving Way for Crypto Industry Consolidation

Circle, the issuer of USDC, has received unconditional final approval from the Office of the Comptroller of the Currency (OCC) to establish a National Trust Bank. This decision marks a significant milestone for Circle as it formally integrates its flagship product and underlying asset custody infrastructure into the U.S. federal regulatory system.

The National Trust Bank charter, also known as First National Digital Currency Bank, N.A., will operate under the name Circle National Trust. Shares of Circle (NYSE: CRCL) surged over 10% in pre-market trading before closing up approximately 5.7% on the day of the announcement.

Circle chose to apply for a National Trust Bank charter rather than a traditional full-service commercial bank. This type of institution is specifically tasked with safeguarding client assets according to high-security standards mandated by law but is prohibited from accepting everyday public deposits or using customer funds to issue commercial loans.