Circle wants to launch First National Digital Currency Bank
Circle Internet Group has applied to the Office of the Comptroller of the Currency (OCC) to establish the First National Digital Currency Bank, N.A., which would be America’s first federally regulated digital currency trust bank. This institution would not operate like a traditional consumer bank.
Instead, its core functions would include:
Safeguarding and managing the USDC reserves on behalf of Circle's U.S. issuer,
Managing cash and short-term Treasury holdings backing USDC,
Offering digital asset custody services to institutional clients.
This move aims to bring USDC, the world’s second-largest stablecoin with over $62 billion in circulation, fully under federal regulation and to strengthen the infrastructure supporting its issuance and circulation.
Presently, Circle relies on third-party custodians for reserve management; the new bank would internalize this control to streamline operations, minimize risk, and improve transparency.
The creation of a national trust bank aligns with recent U.S. legislation, specifically the GENIUS Act, which sets new standards for stablecoins, including 1:1 dollar backing, monthly reserve attestations, and federal oversight.
Approval of this charter would also position Circle to comply with forthcoming regulatory requirements and potentially help shape future U.S. regulations around digital currency banking.
Circle’s CEO, Jeremy Allaire, described the establishment of such a bank as a significant milestone toward building a more transparent, efficient, and accessible internet financial system.
The trust charter offers a tailored regulatory structure suited for digital asset management, involving fewer capital requirements than a traditional national bank charter but enabling essential fiduciary services for stablecoin infrastructure enhancement.
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