Circle Internet Financial, the issuer of USDC, has applied for a national trust bank charter with the U.S. Office of the Comptroller of the Currency.
If approved, this move would create the First National Digital Currency Bank. This charter would enable Circle to securely hold tokenized assets such as bonds and stocks while adhering to the reserve and licensing mandates of the proposed federal stablecoin legislation, known as the GENIUS Act.
The trust bank status could significantly strengthen USDC’s position relative to market leader Tether’s USDT. By operating under a national charter with stricter federal oversight, Circle could provide stronger legal protections and regulatory clarity for institutional users. USDT, which dominates global volumes with a 62.5% market share, lacks this level of direct federal supervision in the U.S.
Circle’s application comes as the U.S. regulatory landscape shifts toward favoring compliant stablecoins. The GENIUS Act, if enacted, could potentially require exchanges to delist unlicensed stablecoins like USDT within the U.S., presenting an opportunity for USDC to capture domestic market share.
Furthermore, the trust bank charter positions Circle as a regulated hub for innovation in tokenized finance, including offering custody services for diverse tokenized assets. This strategic step enhances USDC’s role as a compliance-forward alternative in the digital asset ecosystem, ready to leverage the evolving regulatory framework to potentially challenge Tether’s dominance.