Circle was applied to the Charter First National Digital Currency Bank, which has become trusted by federal regulations that manage USDC reserves and expand management services for institutional clients.
According to Announcement on June 30thCircle seeks authority to operate as a National Trust Bank, which applies to the office of the Secretary of Currency (OCC) and is subject to full OCC supervision.
With approval, the new entity can hold and protect assets supporting US issuer USDC of Circle and provide crypto custody to pension funds, asset managers, and corporate finance personnel.
The Circle added that the National Charter will match its structure to the genius law. This is a bill that moves through Congress, which requires stable issuers of payments to hold separate reserves in regulated agencies.
CEO Jeremy Allaire said the charter “signs a key milestone in its goal of creating a transparent, efficient and accessible Internet financial system.”
He said the company aims to “enhance US dollar reach and resilience” by operating a market-neutral infrastructure open to global institutions.
The circle traded on the New York Stock Exchange under the symbol CRCL and reported more than $32 billion in USDC distribution at the end of May.
Expanding licensing movements
The circle published the New York State Department of Financial Services Bitlicense in 2015. This gave us a head start by adhering to the European Union market with last year's Crypto-Assets framework.
April, Abu Dhabi Global Market I recognized the company As a general rule, approval is provided to operate as a money service provider. Circle said OCC filing has expanded its licensing strategy to the federal US rather than the state level.
Trust Bank will serve as a wholly owned subsidiary of Circle Internet Group. Maintain capital and liquidity according to OCC rules and submit it to regular exams. Circle did not provide a startup timeline. Typically, OCC ratings for trust charter applications usually span several quarters.
In its announcement, the Circle noted that the agency's clients had pushed the federal government to stake Stablecoin issuers for regulated custody options for U.S. lawmakers to discuss reserve mandates and disclosure standards.
By holding reserves in state trusts, Circle aims to streamline compliance prior to the potential passage of genius acts, while reducing counterparty risks for large depositors.
