Circle Files for National Trust Bank Charter to Boost USDC Regulatory Standing

Circle, the company behind the USDC stablecoin, has submitted an application to the Office of the Comptroller of the Currency (OCC) to form a national trust bank. This strategic MOVE aims to bring its reserve management fully under U.S. regulatory supervision, replacing its current partnership with BlackRock.

The proposed trust structure WOULD establish Circle as a recognized fiduciary institution, allowing it to directly custody USDC reserves and comply with the Genius Act's strict stablecoin regulations. Approval could drive greater institutional adoption by offering regulated custodial services alongside its dollar-pegged digital asset.

This shift comes as stablecoin issuers face mounting pressure to prove transparency. A successful application would strengthen USDC's competitive position against Tether (USDT) while expanding the U.S. dollar's influence in digital asset markets.