Circle Files for National Trust Bank License in the U.S.
The post Circle Files for National Trust Bank License in the U.S. appeared first on Coinpedia Fintech News
Circle Internet Group Inc. (NYSE: CRCL), a top-tier stablecoin issuer, has applied for a national trust bank license in the United States with the Office of the Comptroller of the Currency (OCC). The behemoth stablecoin issuer intends to establish the First National Digital Currency Bank, which would manage its reserves in USDC.
“Circle has long sought to seek the highest standards of trust, transparency, governance, and compliance,” Jeremy Allaire, CEO at Circle, noted. “Becoming a publicly traded company is a significant part of that, becoming a national trust company is again a continuation of that.”
Expected Impact of Circle’s Entrance in the Banking Sector
If approved by the OCC, Circle will join Anchorage Digital, which was issued the national trust bank charter. As a result, more institutional investors’ capital will flow to the crypto market.
To the wider crypto market, liquidity headwinds will be an issue of the past. Moreover, the current U.S. national government, led by President Donald Trump, has laid significant emphasis on clear crypto legislation.
Most importantly, the license will allow Circle to provide custody services for digital assets on behalf of the institutional investors. The palpable success of Circle in the stablecoin market has helped the firm attract more institutional investors, especially in the past year. The recent approval of the Genius Act in the U.S. Senate has increased the overall demand for stablecoins by institutional investors.
Furthermore, President Trump has urged Congress to hasten and pass the GENIUS Act and to facilitate the mainstream development and adoption of stablecoins.
