Last updated on July 3rd, 2025 at 10:51 am
Circle, the issuer of the USDC stablecoin, has formally applied for a national bank charter in the United States.
This move aims to establish the first-ever national digital currency bank, marking a significant milestone in the integration of digital assets with traditional finance.
The company submitted its application to the Office of the Comptroller of the Currency (OCC), seeking approval to operate as a federally regulated national bank. Circle’s vision is to combine the stability and regulatory oversight of a national bank with the innovation and efficiency of blockchain technology. If approved, Circle Bank would be able to offer digital currency services alongside traditional banking products, potentially accelerating mainstream adoption of stablecoins and digital payments.
Circle’s CEO, Jeremy Allaire, emphasized the importance of regulatory clarity and compliance in building trust for digital currencies. The bank charter would allow Circle to hold reserves securely, issue USDC stablecoins with full backing, and provide banking services to crypto businesses and retail customers. This could also reduce reliance on third-party banks, which have sometimes limited crypto firms’ access to financial services.
The OCC has been actively encouraging innovation in the banking sector, including the exploration of digital assets. Circle’s application follows similar efforts by other fintech companies seeking to bridge the gap between digital finance and traditional banking. However, the approval process is expected to be rigorous, involving thorough assessments of risk management, capital adequacy, and consumer protection.
This development reflects a broader trend of regulatory engagement with digital currencies in the US. As stablecoins gain traction, regulators are increasingly focused on ensuring these instruments operate within a safe and transparent framework. Circle’s pursuit of a national bank charter could set a precedent for other crypto firms aiming to gain formal banking status.
Notably, Fiserv, a US fintech company, has announced plans to launch its own US dollar-backed stablecoin, called FIUSD, in partnership with PayPal and Circle to enhance digital asset services across its banking and payments network.
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