Circle Applies to Establish National Trust Bank in the U.S. to Manage USDC reserves, Switching from BlackRock
2025-07-01 14:25:36
Main Idea
Circle has applied to establish a national trust bank to manage USDC reserves, aiming to enhance its infrastructure and competitiveness in the stablecoin market while complying with US regulations.
Key Points
1. Circle applied for a national trust bank charter with the US Office of the Comptroller of the Currency (OCC) to manage USDC reserves and operate as a recognized trust institution.
2. The proposed trust, named The First National Digital Currency Bank, would allow Circle to custody USDC for institutional clients and strengthen its stablecoin infrastructure.
3. Circle currently partners with BlackRock and BNY Mellon to manage its USDC reserves, and the new trust could complement these relationships.
4. CEO Jeremy Allaire emphasized the importance of trust in crypto, stating that Circle seeks high regulatory standards to build confidence in USDC.
5. Circle's USDC is backed by treasury bills managed by BlackRock, and the company maintains strong regulatory relationships, which may give it an advantage in expanding into European markets.
Description
Circle, a crypto company that issues USDC stablecoin, has applied to establish a national trust bank to manage USDC reserves on the company’s behalf and abide by US regulations. Circle has applied for the trust from the US Office of the Comptroller of the Currency (OCC). If the OCC approves, the trust would allow Circle to operate as a US-recognised trust institution. The announcement comes as US companies such as Circle try to integrate their services within traditional frameworks. Circle’s dig...
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