Circle wins OCC approval for First National Digital Currency Bank

The Office of the Comptroller of the Currency granted final approval for Circle to establish First National Digital Currency Bank, which will operate as Circle National Trust. The federally chartered national trust bank will begin by providing fiduciary digital asset custody services for Circle and its affiliated companies.

Circle applied for the charter in June 2025 and received OCC approval on Friday. The authorization allows the firm to set up a federally regulated trust institution and expand its custody infrastructure under federal supervision.

The bank’s approved business plan limits its initial services to custody for Circle and related entities. The plan permits the bank to broaden services later if client demand develops.

Under the trust bank structure, Circle National Trust may extend custody services to a limited group of institutional customers in the future, including banks and regulated derivatives firms. The charter also creates a pathway for Circle to place management of the USDC reserve under federal oversight if the company elects to move those operations into the trust bank.

The OCC approval adds to Circle’s regulatory record. The company received a New York BitLicense in 2015 and in 2024 became the first global stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets regulation. Circle also holds permissions or registrations in the United Kingdom, Singapore, Bermuda, Canada and Abu Dhabi.

At the time of the announcement, USDC had about $73.3 billion in market capitalization, up roughly 16.7% from $62.8 billion a year earlier and down about 2.5% year-to-date from $75.2 billion. Circle Internet Group’s stock rose about 16% in pre-market trading on Friday, trading above $73 after closing the prior session near $63.

Trust banks are regulated under OCC rules that focus on fiduciary and custody activities rather than broad commercial banking. By starting with custody for its own operations, Circle can use the chartered bank to support core infrastructure while keeping the option to add qualified institutional clients under the approved plan.

Jeremy Allaire, Circle’s chief executive, described the OCC approval as a step toward integrating blockchain technology and digital assets into the US financial system and added that the charter would strengthen custody and compliance capabilities while aligning operations with federal banking supervision.