Circle Internet Group, the issuer of the USDC stablecoin, has filed an application to create a national trust bank in the United States.
According to an official statement, the proposed institution, named First National Digital Currency Bank, would be supervised by the Office of the Comptroller of the Currency (OCC) and serve as the backbone for USDC issuance and custody services.
A Crypto Bank Built for Compliance and Institutional Trust
If approved, the bank would manage USDC reserves under full federal oversight and offer crypto custody solutions to institutional clients.
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The move comes after Circle’s IPO launch last month, which valued the company at nearly $18 billion. It also marks the company’s intent to solidify USDC’s regulatory footing in anticipation of future legislation, particularly the GENIUS Act, which is advancing through Congress and could reshape stablecoin governance if approved.
Circle CEO Jeremy Allaire framed the initiative as a critical step in building a more open and trusted internet-based financial system. He also noted that a regulated crypto-native bank could bolster the role of the U.S. dollar in the evolving digital economy.
This effort follows Circle’s 2024 milestone as the first global stablecoin issuer to comply with the EU’s Markets in Crypto-Assets (MiCA) framework.
With regulatory winds shifting on both sides of the Atlantic, Circle appears determined to lead in compliant, institution-grade crypto infrastructure.
Why This Matters
This move could position Circle as the first crypto-native institution to operate like a traditional bank under full federal oversight.
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People Also Ask:
Circle is a fintech company that issues the USDC stablecoin, a cryptocurrency pegged to the U.S. dollar, and provides infrastructure for digital payments and blockchain-based finance.
The bank would serve as the operational foundation for USDC, managing its reserves under federal oversight and offering institutional crypto custody services.
The GENIUS Act is a proposed U.S. law that could significantly impact the regulation of stablecoins. Circle’s move anticipates stricter legal frameworks for stablecoin issuers.
Currently, the proposed bank is focused on institutional services, such as reserve management and crypto custody, not consumer banking.
