Circle receives final approval from OCC to establish the National Trust Bank

Circle receives final approval from the OCC to establish a national trust bank

Overview

Circle Internet Group has received final approval from the Office of the Comptroller of the Currency to establish a federally supervised national trust bank. The bank initially only provided digital asset custody services to Circle and its affiliates. Future plans may include providing custody services to institutional customers and directly managing reserve assets that support USDC stablecoins.

According to Circle\'s announcement on July 10, the new institution will be named Circle National Trust, and its legal name will remain First National Digital Currency Bank, N.A.

Circle National Trust receives federal approval

OCC approval means Circle National Trust will be directly subject to federal supervision. The regulator oversees National Bank and National Trust Bank across the United States.

Circle has received final approval from the OCC to establish a national trust bank called First National Digital Currency Bank, N.A. to operate under the name Circle National Trust.

Circle said that the bank will initially provide entrusted digital asset custody services to Circle and its affiliates. It will not accept deposits and provide consumer loans like traditional commercial banks do. However, Circle National Trust may provide custody services to a limited number of institutional customers in the future. Its approved business plan lists banks, financial institutions and regulated derivatives organizations as potential customers.

The company said the banking license could also support future management of USDC reserve assets. However, Circle has not confirmed when or whether the bank will assume this role.

Circle co-founder and CEO Jeremy Allaire described the approval as a \"landmark step\" marking the integration of the blockchain system into the U.S. financial system. He said federal regulation would provide a clearer governance framework for institutions using public blockchains.

USDC reserve management remains a future plan

Currently, the USDC operates through Circle\'s existing regulated entities and reserve arrangements. Circle National Trust\'s planned role would add a federally supervised custodian layer to the structure. Circle said reserve management through the trust bank in the future could provide more direct supervision of assets supporting the USDC. The stablecoin is designed to maintain the value of $1 through reserves that include cash and short-term U.S. government securities.

The company added that a national banking license would align its infrastructure with fiduciary standards applicable to traditional trust banks. These institutions keep assets for customers, but usually do not provide all the services available to commercial banks.

Meanwhile, the OCC granted conditional license approvals to Circle and several other digital asset companies in December 2025. These companies include Ripple, Paxos, BitGo and Fidelity Digital Assets. Circle must meet pre-opening conditions set by the OCC before receiving final authorization. The company submitted its original application on June 30, 2025.

The approval comes with the approval of broader U.S. stablecoin regulation

Circle, which comes as a regulatory framework for payment stablecoins at the federal level has also been introduced. The GENIUS Act establishes reserve, reporting and compliance rules for approved stablecoin issuers. The use of stablecoins in payments and settlements is expanding, and the adoption rate of USDC among regulated financial institutions and payment companies continues to increase.

Circle said this banking license supports USDC\'s use in payments, capital markets and settlements. However, a national trust bank license does not mean that the USDC becomes a bank deposit, nor does it provide federal deposit insurance for token holders. The license also does not mean Circle National Trust can immediately provide all the services listed in its long-term plan. New products still need to meet regulatory requirements, internal controls and further operational work.

Cryptocurrency trust licenses face banking criticism

Circle\'s approval comes as banking groups are questioning the OCC\'s decision to grant a national license to cryptocurrency companies. The Banking Policy Institute has considered filing legal proceedings over the regulator\'s licensing policies. The group believes that cryptocurrency trust banks may offer bank-like products without having to follow the same rules as universal banks. Other banking groups have also asked the OCC to restrict or adjust its practices. They expressed concerns about financial stability, consumer protection and the legal scope of national trust bank licenses.

Circle insists federal regulation will strengthen its governance and compliance standards. The company also holds regulatory approvals in the European Union, Singapore, Bermuda, Canada, the United Kingdom and Abu Dhabi. Circle became the first company to obtain a BitLicense in New York in 2015 and later became one of the first major stablecoin issuers to comply with the European Union\'s Cryptographic Asset Markets Regulation.