U.S. — The U.S. Office of the Comptroller of the Currency granted Circle approval to operate as a trust bank on July 10, 2026. This authorization allows Circle to directly manage its reserve assets and provide digital asset custody services for institutional clients.

The new entity will operate under the name Circle National Trust and will be subject to direct federal banking oversight. Following this announcement, Circle's stock increased by more than 14% in premarket trading and by 8% in early trading on Friday.

Circle CEO Jeremy Allaire stated, "OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the U.S. financial system." This regulatory action enables Circle to hold reserves under its own federally regulated custody, a departure from the previous arrangement where cash and short-term U.S. Treasurys backing its USDC stablecoin were held by third-party banking partners.

The USDC stablecoin currently has more than $73 billion in circulation. The newly granted charter does not permit Circle to function as a commercial bank that accepts deposits and issues loans. The GENIUS Act established a federal framework for payment stablecoins. The OCC has engaged in various actions with other entities in the digital asset space, including approvals or applications involving Coinbase, BitGo, Fidelity Digital Assets, Ripple, and Paxos.

Why It Matters

The decision by the U.S. Office of the Comptroller of the Currency to grant Circle a trust bank charter has implications for the integration of digital assets into the U.S. financial system. Allowing Circle to directly manage its reserve assets and offer digital asset custody services brings a stablecoin issuer under federal banking oversight. This move may represent an increased effort to standardize and regulate operations involving digital currencies, as evidenced by recent OCC actions with other digital asset companies and the establishment of a federal framework for payment stablecoins under the GENIUS Act.