Circle Seeks Federal Bank Charter to Bolster USDC Regulatory Framework

Circle, the issuer of the USDC stablecoin, has taken a decisive step toward regulatory clarity by applying for a national trust bank charter with the Office of the Comptroller of the Currency. The proposed entity, First National Digital Currency Bank, N.A., WOULD operate under direct federal oversight, mirroring traditional financial institutions.

A successful application would streamline Circle's operations across state lines, eliminating the need for individual state licenses—a persistent challenge for crypto firms. The move positions USDC reserves under federally regulated custody while expanding institutional service offerings.

This strategic play comes as Congress considers the GENIUS Act, which would establish new frameworks for stablecoin regulation. Circle's initiative demonstrates proactive compliance with anticipated requirements, following similar trust charters obtained by crypto custodians Paxos and Anchorage.