Circle has formally applied for a banking license after its successful IPO, seeking to provide custodial services for itself and institutional clients. The US trust bank license application precedes an incoming robust stablecoin regulation as ecosystem activity heats up.
Circle Applies For Trust Bank License
According to a Reuters report, stablecoin issuer Circle is seeking the creation of a new entity to operate as a national trust bank. Per the report, the company has applied for a US trust bank license that will allow it to provide a raft of custodial services.
If granted the trust bank license by the Office of the Comptroller of the Currency (OCC), Circle will float First National Digital Currency Bank. Circle CEO Jeremy Allaire says the new entity will custody a slice of Circle’s USDC reserves, but a portion will continue to be held in top financial institutions.
Furthermore, the license will allow Circle to offer custodial services for tokenized stocks and bonds rather than Bitcoin or Ethereum.
“Circle has long sought to seek the highest standards of trust, transparency, governance, and compliance,” said Allaire. “Becoming a publicly traded company is a significant part of that, becoming a national trust company is again a continuation of that.”
The move comes after the company’s IPO, with Circle stock flipping USDC in market capitalization after a meteoric rally.
This is a developing story and will be updated as new facts emerge.
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Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
