Circle Secures Federal Charter for Crypto Custody Bank - Blockonomi

by · Blockonomi

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  • Circle received final OCC approval to establish Circle National Trust.
  • The bank will provide fiduciary digital asset custody services.
  • It cannot accept consumer deposits or issue traditional loans.
  • The trust bank may later serve selected regulated institutions.
  • The charter could support future USDC reserve management under OCC oversight.

Circle has received final OCC approval to establish a federally regulated national trust bank in the United States. The decision expands Circle’s regulated infrastructure as crypto companies seek federal charters and custody permissions. The new bank will provide fiduciary digital asset custody but cannot accept consumer deposits or issue commercial loans.

Federal Charter Places Trust Bank Under OCC Oversight

The institution will operate as Circle National Trust and remain subject to direct federal supervision. National trust banks can provide custody and fiduciary services under federal rules, but they differ from commercial banks. They cannot offer standard deposit accounts, extend consumer credit, or conduct traditional lending activities.

Circle applied for the charter in June 2025 and received conditional approval six months later. Final authorization allows the company to complete preparations before the trust bank begins approved operations. The OCC will oversee governance, risk controls, compliance systems, and other requirements under the approved business plan.

Circle CEO Jeremy Allaire described the approval as a major step for blockchain infrastructure within the financial system. “Federal oversight of our trust bank sets a new standard for transparency, governance, and scale for Circle’s infrastructure,” Allaire said. The statement linked the charter to stronger federal supervision of digital asset custody and related services.

Custody Services Will Begin With Affiliated Operations

Circle National Trust will initially provide fiduciary custody services for the company and its affiliated businesses. The approved plan also permits later services for a limited number of regulated institutional customers. Potential customers include banks and other financial institutions that require federally supervised digital asset custody.

The charter also creates a route for Circle to manage reserves supporting USDC under OCC oversight. However, the company said reserve management remains a future capability rather than an immediate banking service. The trust bank will follow its approved plan as it develops additional functions and compliance systems.

The company issues USDC, the second-largest dollar-pegged stablecoin by reported circulation. USDC has about $73.2 billion in circulation, while Tether’s USDT holds roughly $184.1 billion. The bank approval could support custody and reserve operations tied to the issuer’s regulated infrastructure.

Crypto Firms Continue Seeking Federal Banking Status

Several crypto companies have pursued federal charters, trust licenses, and custody approvals during the industry’s regulatory expansion. Kraken has sought federal permissions, while Crypto.com secured an OCC license for regulated crypto custody in February. These applications reflect a broader shift toward federal supervision for digital asset services.

BitGo, Ripple, Paxos, and Fidelity Digital Assets received similar conditional OCC approvals in December. Those approvals allow the firms to continue meeting requirements before launching federally supervised trust operations. The company now joins that group with final approval for its national trust bank.

The approval gives the company a federally supervised entity for custody and possible future reserve management. The bank will open under OCC oversight and operate within the limits of its approved business plan. Circle has therefore completed a key regulatory step in its broader U.S. crypto expansion.

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