Circle Seeks Federal Trust Status to Manage USDC Reserves and Expand Crypto Custody Services

Circle has applied to charter the First National Digital Currency Bank, aiming to become a federally regulated trust under the Office of the Comptroller of the Currency (OCC). The move WOULD allow the firm to manage reserves for its USDC stablecoin and offer custody services to institutional clients, including pension funds and asset managers.

A national trust charter would align Circle with the proposed GENIUS Act, which mandates segregated reserves for stablecoin issuers in regulated institutions. CEO Jeremy Allaire framed the application as a milestone in building a transparent, dollar-anchored financial infrastructure for global markets.

The company reported over $32 billion in USDC circulation as of May 2024. This follows Circle's early regulatory lead as the first recipient of New York's BitLicense in 2015.