federally – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Sat, 05 Jul 2025 21:43:00 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.8 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 federally – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Circle Seeks Green Light to Launch Federally Regulated Trust Bank https://earlybirdsinvest.com/circle-seeks-green-light-to-launch-federally-regulated-trust-bank/ https://earlybirdsinvest.com/circle-seeks-green-light-to-launch-federally-regulated-trust-bank/#respond Sat, 05 Jul 2025 21:43:00 +0000 https://earlybirdsinvest.com/circle-seeks-green-light-to-launch-federally-regulated-trust-bank/

Circle, the company behind the USDC
USDC


$1.00

stablecoin, has filed an application to become a national trust bank.

The decision would enable the firm to directly manage the reserves backing USDC and operate under the supervision of a single federal regulator, the Office of the Comptroller of the Currency (OCC).

If the OCC approves the plan, Circle would launch First National Digital Currency Bank, NA, a federally regulated trust company. Unlike traditional banks, this type of institution cannot make loans or take cash deposits, according to a report by Reuters.

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Instead, it focuses on storing and protecting assets, such as the dollar reserves tied to USDC. The trust bank would also be able to provide custody services to large clients, including other financial institutions.

Circle said this new setup would help it meet the requirements of the GENIUS Act, a stablecoin regulation bill that recently passed in the US Senate and is being considered in the House of Representatives.

In a statement, Circle’s co-founder and CEO, Jeremy Allaire, said the company is working to strengthen the foundation of USDC. He explained that the trust bank would support Circle’s efforts to build a digital financial system that is open, reliable, and follows US regulations.

Allaire added that this decision could help expand the use of the dollar globally by giving institutions more secure ways to use stablecoins.

Meanwhile, the Bank of Korea (BOK) recently called for a slow and controlled introduction of stablecoins in the country. What did Deputy Governor Ryoo Sang-dae say? Read the full story.

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]]> https://earlybirdsinvest.com/circle-seeks-green-light-to-launch-federally-regulated-trust-bank/feed/ 0 45977 Circle targets federally regulated trust status to manage stablecoin reserves, offer custody services https://earlybirdsinvest.com/circle-targets-federally-regulated-trust-status-to-manage-stablecoin-reserves-offer-custody-services/ https://earlybirdsinvest.com/circle-targets-federally-regulated-trust-status-to-manage-stablecoin-reserves-offer-custody-services/#respond Tue, 01 Jul 2025 04:03:29 +0000 https://earlybirdsinvest.com/circle-targets-federally-regulated-trust-status-to-manage-stablecoin-reserves-offer-custody-services/

Circle applied to charter First National Digital Currency Bank to become a federally regulated trust that would manage USDC reserves and expand custody services for institutional clients.

According to a June 30 announcement, Circle applied to the Office of the Comptroller of the Currency (OCC), seeking authority to operate as a national trust bank subject to full OCC supervision. 

Approval would permit the new entity to hold and safeguard the assets backing USDC for Circle’s US issuer and to offer crypto custody to pension funds, asset managers, and corporate treasurers. 

Circle added that a national charter would align its structure with the GENIUS Act, a bill moving through Congress that would require payment stablecoin issuers to hold segregated reserves in federally regulated institutions.

CEO Jeremy Allaire said the charter “marks a significant milestone in our goal to build an internet financial system that is transparent, efficient, and accessible.” 

He noted that the firm aims to “enhance the reach and resilience of the US dollar” by operating market-neutral infrastructure open to global institutions. 

Circle trades on the New York Stock Exchange under the symbol CRCL and reported more than $32 billion in USDC circulation at the end of May.

Expanding licensing movement

Circle issued the first New York Department of Financial Services BitLicense in 2015, which gave it a head start in complying with the European Union’s Markets in Crypto-Assets framework last year. 

In April, the Abu Dhabi Global Market granted the company in principle approval to operate as a money services provider. Circle said the OCC filing extends that licensing strategy to the US at the federal tier rather than the state level.

The trust bank will act as a wholly owned subsidiary of Circle Internet Group. It will maintain capital and liquidity according to OCC rules and submit to regular examinations. Circle did not provide a launch timeline. OCC evaluations of trust charter applications typically span several quarters.

In its announcement, Circle noted that institutional clients have pressed stablecoin issuers for federally regulated custody options as US lawmakers debate reserve mandates and disclosure standards. 

By holding reserves at a national trust, Circle aims to streamline compliance ahead of the potential passage of the GENIUS Act while reducing counterparty risk for large depositors.

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