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Circle Seeks Green Light to Launch Federally Regulated Trust Bank

Key Takeaways

  • Circle plans to launch a national trust bank to manage USDC reserves under OCC oversight;
  • The trust bank would not offer loans or take deposits, but would provide asset custody services;
  • The decision would support Circle’s goal to meet the GENIUS Act rules and build a trusted stablecoin infrastructure.​

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Circle Seeks Green Light to Launch Federally Regulated Trust Bank

Circle, the company behind the USDC USDC $0.9992 stablecoin, has filed an application to become a national trust bank.

The decision would enable the firm to directly manage the reserves backing USDC and operate under the supervision of a single federal regulator, the Office of the Comptroller of the Currency (OCC).

If the OCC approves the plan, Circle would launch First National Digital Currency Bank, NA, a federally regulated trust company. Unlike traditional banks, this type of institution cannot make loans or take cash deposits, according to a report by Reuters.

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Instead, it focuses on storing and protecting assets, such as the dollar reserves tied to USDC. The trust bank would also be able to provide custody services to large clients, including other financial institutions.

Circle said this new setup would help it meet the requirements of the GENIUS Act, a stablecoin regulation bill that recently passed in the US Senate and is being considered in the House of Representatives.

In a statement, Circle’s co-founder and CEO, Jeremy Allaire, said the company is working to strengthen the foundation of USDC. He explained that the trust bank would support Circle’s efforts to build a digital financial system that is open, reliable, and follows US regulations.

Allaire added that this decision could help expand the use of the dollar globally by giving institutions more secure ways to use stablecoins.

Meanwhile, the Bank of Korea (BOK) recently called for a slow and controlled introduction of stablecoins in the country. What did Deputy Governor Ryoo Sang-dae say? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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