Circle seeks to become a bank to manage reserve assets for stablecoins and offer fiduciary services.

From Yahoo Finance: 2025-07-01 11:47:00

Circle has applied for a national trust bank charter with the OCC to establish First National Digital Currency Bank. The charter would allow Circle to manage reserve assets for its stablecoins and offer fiduciary services. Circle’s stock opened 2% lower on Tuesday but is up 470% from its IPO price.

President Trump aims to make America the “crypto capital of the world.” The stablecoin market, valued at $253 billion, is attracting attention from Wall Street and corporate America. Stablecoins, unlike other cryptocurrencies, aim to maintain a stable value and are seen as a potential gamechanger in cross-border payments.

The GENIUS Act, a stablecoin bill, would set standards for how US banks offer stablecoins and manage reserves. Another bill, the Clarity Act, includes tokenization to allow US firms to offer blockchain versions of assets like bank deposits. Circle, as the issuer of the second-largest stablecoin USDC, stands to benefit from these new regulations.

Treasury Secretary Bessent predicts the US stablecoin market could exceed $2 trillion by 2028 with the passing of stablecoin legislation. Analysts view Circle as an essential investment to participate in the new internet-scale financial system. Bernstein forecasts the global stablecoin market to grow to $4 trillion in the next decade.



Read more at Yahoo Finance: Why stablecoin issuer Circle wants to be a bank