Circle Gets Final OCC Approval to Establish National Trust Bank

USDC issuer Circle has received final approval from the U.S. Office of the Comptroller of the Currency to establish a national trust bank.

Circle said on July 10 on its website that the OCC had approved the formation of First National Digital Currency Bank, a national trust bank. The bank will be called Circle National Trust.

Circle National Trust will be directly supervised by the OCC and is intended to strengthen custody infrastructure for USDC. Circle also plans to add USDC reserve management functions later.

Once operations begin, the bank will initially provide custody services to Circle and its affiliates. Under the OCC-approved business plan, it may later offer digital-asset custody services directly to banks and certain institutional investors, including regulated derivatives firms, depending on demand.

Circle co-founder and Chief Executive Officer Jeremy Allaire called the OCC approval an important turning point in integrating blockchain technology and digital assets into the core of the U.S. financial system. He added that it would help financial institutions use public blockchains in a clearer regulatory environment.

The news sent Circle shares up 10.29% in premarket trading to $69.49 from the previous close.