Circle Gets OCC Approval For Banking License

Circle, the issuer of the USDC stablecoin, has received approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank, marking a significant moment in the coming together of digital and traditional asset markets.

The OCC’s approval means that the stablecoin-issuer gets access to banking rails as the operator of First National Digital Currency Bank, which will be known as Circle National Trust. At its opening, the bank will offer fiduciary digital asset custody services for Circle and its affiliates, as per its business plan that received approval from the OCC, which includes the possibility of reserve management as a future capability. The plan states that depending on demand, “FNDCB may eventually offer its digital asset custody service to a limited number of institutional customers directly, focusing on banks and other financial institutions, such as regulated derivatives organizations.” 

The approval places Circle National Trust under direct federal oversight by the OCC, the primary regulator for national banks and national trust banks and by extension, it brings USDC infrastructure into the federal banking framework. The bank will “advance” the role of the USDC stablecoin as a digital dollar infrastructure for payments, settlement and capital markets activity, the company said.

“OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the U.S. financial system,” said Jeremy Allaire, Co-Founder, Chairman, and CEO of Circle.