Circle gains bank charter approval from OCC

• Circle received final approval from the U.S. OCC to establish a national trust bank.
• Circle shares rose 10% in premarket trading after the regulatory announcement.
• Circle said the charter will allow custody services for reserves and institutional digital assets.

Circle Internet Group (NYSE:CRCL) received final regulatory approval from the U.S. Office of the Comptroller of the Currency to establish Circle National Trust, allowing the stablecoin issuer to operate a federally supervised national trust bank.

The approval comes as digital asset companies seek banking, custody and payment licenses, with Circle expanding its financial infrastructure around its USDC stablecoin, which had a market value of about US$73.2 billion according to CoinGecko.

“OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the U.S. financial system,” said Circle Chief Executive Officer Jeremy Allaire.

Circle said the national trust charter will allow the company to act as custodian for its own reserves and hold crypto assets on behalf of institutional clients under direct OCC oversight.

Circle shares rose 10% in premarket trading following the announcement.

Circle issues USDC, a dollar-pegged stablecoin designed to maintain a 1:1 value with the U.S. dollar and used for transfers between digital assets and other financial applications.

The company has expanded its role in the digital asset market as regulatory frameworks develop, while Circle reported a market capitalization of about US$15.7 billion and a 20.5% year-to-date share decline through the previous close.