Circle Seeks OCC Approval for USDC Bank Amid Stablecoin Regulation Push
Circle Internet Group, Inc. (NYSE: CRCL), the issuer of the USDC stablecoin, has applied for a United States national trust bank charter to oversee its USDC reserves and adapt to the fast-changing stablecoin regulations.
Filed with the Office of the Comptroller of the Currency (OCC) on June 30, 2025, the application requests to establish “First National Digital Currency Bank, N.A.” to hold reserves and offer custody services.
Valued at approximately $43.75 billion following its June 2025 IPO, Circle’s move is a testament to its push to strengthen USDC’s infrastructure and integrate digital assets with traditional finance at a time of growing regulatory scrutiny.
Circle’s market capitalization (Source: CompaniesMarketCap)
How Circle Charter Bid Fits the GENIUS Act’s Vision
The charter application is a proactive step to comply with the proposed GENIUS Act, which passed the United States Senate on June 17, 2025, and awaits a House vote, imposing stricter oversight on stablecoin issuers. The move positions Circle to meet these standards.
Jeremy Allaire, the company’s CEO, stated, “This application reinforces our USDC infrastructure, aligning with U.S. regulations to build an open, efficient internet financial system,” as published in a Circle Press Release.
A national trust bank charter, regulated by the OCC, would limit Circle to custodial services, prohibiting deposit-taking or lending. Circle’s regulatory record makes it a stronger offer, with the initial NYDFS BitLicense in 2015, EU MiCA compliance in 2024, and in-principle approval as a money services provider by Abu Dhabi Global Market in April 2025.
Inside Circle’s Plan to Manage USDC Under Federal Eyes
The OCC will review Circle’s application following a 30-day public comment period, with a decision expected within 120 days, potentially by late 2025.
The proposed bank would manage a portion of USDC’s reserves—currently held at BNY and managed by BlackRock in U.S. Treasury bills, repurchase agreements, and cash—to improve transparency.
Circle has been eyeing and exploring a bank charter since 2022, with renewed discussions in April 2025.
The application is in line with moves by other crypto firms, including Coinbase and BitGo, which are reportedly considering similar charters. Anchorage Digital set a precedent in 2021 as the first crypto firm to secure an OCC charter. This is a repeat of an industry trend for regulatory integration, out of the need for institutional trust.
Why Circle’s Charter Could Shake Up Stablecoin Markets
The company’s application has drawn positive reactions from the crypto sector. With market enthusiasts commenting, “Circle’s charter move could drive USDC adoption—huge and not priced in.”
Circle’s stock (CRCL) closed at $181.29 on June 30, up 0.48%, with a slight after-hours drop to $179.05, in line with its $43.75 billion valuation.
CRCL price chart (Source: Yahoo Finance)
In April 2025, The company’s chief strategy officer denied pursuing a federal charter in favor of compliance with stablecoin regulations.
The June application is a strategy change, most likely because of regulatory clarity and IPO momentum. A charter could improve USDC’s legitimacy, boosting institutional adoption and competitiveness against rivals like USDT.
What a USDC Bank Means for Digital Dollars Worldwide
If approved, the charter would allow the firm to manage USDC reserves under federal oversight, reinforcing trust and stability for a stablecoin integral to DeFi and cross-border payments. This could strengthen the U.S. dollar’s role in digital finance through a regulated framework.
However, the OCC’s rigorous review process and uncertainty surrounding the GENIUS Act’s House approval pose challenges.
The company’s $43.75 billion valuation and $6 billion IPO are testament to its market strength, but regulatory difficulties could affect the timeline.
