Circle Files for National Digital Currency Bank Charter to Bolster USDC Reserve Management

Circle Internet Financial, the company behind the USDC stablecoin, has submitted an application to the Office of the Comptroller of the Currency (OCC) to establish the First National Digital Currency Bank. This federally chartered trust bank WOULD manage Circle's USDC reserves and offer digital asset custody services to institutional clients, transitioning away from its current reliance on BlackRock for reserve custody.

The strategic MOVE aims to reduce third-party custody risks and comply with regulatory frameworks like the GENIUS Act. By bringing reserve management under direct federal oversight, Circle intends to increase transparency and stability for USDC—the second-largest stablecoin by market cap.

This development highlights rising institutional demand for regulated crypto infrastructure. Securing a federal charter would place Circle alongside traditional financial institutions while strengthening trust in its stablecoin operations—a crucial advantage as regulators increase scrutiny of dollar-pegged cryptocurrencies.