Circle Internet Group applies for national trust charter to establish First National Digital Currency Bank overseen by OCC, enhancing USD Coin infrastructure

Circle Internet Group has applied for a national trust charter to establish First National Digital Currency Bank, overseen by the OCC. The new bank can offer digital asset custody services to institutional customers, enhancing USD Coin infrastructure. Circle aims to align with emerging U.S. regulations for stablecoins.

The national trust charter is different from a traditional bank charter, focusing on managing assets rather than deposits and lending. This move allows Circle to expand its product offerings, positioning itself as a link between the digital asset economy and traditional finance. Circle’s recent IPO success drove the trust charter application.

Circle’s application follows a successful IPO on the NYSE, raising over $1 billion. The company priced its common stock above its target range, valuing it at $18 billion. Circle aims to integrate digital assets into the broader U.S. financial system. The GENIUS Act, passed by the Senate, sets the first federal framework for regulating stablecoins.

Ripple Labs has also applied for a national bank charter to form Ripple National Trust Bank. Wise, a London-based fintech, applied for a national trust charter to establish Wise National Trust. These moves align with the trend of financial technology companies seeking national bank charters, aiming to bridge digital assets with traditional finance.

Read more at Yahoo Finance: Circle applies for national trust charter