Circle Pursues USDC Expansion with U.S. National Trust Bank Charter Application

Circle has filed an application to become a U.S. national trust bank, a strategic move that would enable direct custody of its $60 billion reserves—eliminating intermediaries. These reserves, backing USDC (the second-largest stablecoin), are held in cash and short-duration U.S. Treasuries, as confirmed in its June 26 attestation. If approved, Circle would join Anchorage Digital Bank as only the second crypto firm to secure a national trust charter, following Anchorage's conditional approval in 2021.

The application coincides with a dramatic surge in Circle's stock price post-IPO, skyrocketing from $31 to nearly $300 amid bullish market sentiment driven by the Senate's progress on stablecoin legislation. This Optimism has catalyzed industry-wide momentum, with major players like Fiserv, Mastercard, Amazon, and Walmart reportedly exploring stablecoin projects. However, JPMorgan analyst Kenneth Worthington has expressed skepticism, issuing an underweight rating with an $80 price target—the most conservative on Wall Street.