Stablecoin firm Circle Seeks National Trust Bank Status In Latest Effort To Integrate Crypto To US Financial Systems

Circle (CRCL) edged higher in premarket trading after the stablecoin issuer applied to establish a national trust bank, days after its blockbuster public listing at the New York Stock Exchange.

If approved, the First National Digital Currency Bank would be able to operate as a federally regulated trust institution, subject to oversight by the Office of the Comptroller of the Currency (OCC). It would also oversee the management of the USDC Reserve on behalf of Circle’s U.S. issuer. Anchorage Digital is the only other crypto company to hold the same license.

“By applying for a national trust charter, Circle is taking proactive steps to further strengthen our USDC infrastructure. Further, we will align with emerging U.S. regulations for the issuance and operation of dollar-denominated payment stablecoins, which we believe can enhance the reach and resilience of the U.S. dollar,” said Circle CEO Jeremy Allaire.

This comes after the Senate passed the ‘Genius Act,’ which will regulate stablecoin digital assets, which are typically pegged at a 1:1 ratio with the U.S. dollar. Crypto users often utilize stablecoins to transfer funds between more volatile cryptocurrency assets.

“A federally regulated trust charter would also help Circle meet expected requirements under the proposed GENIUS Act legislation, which would represent a meaningful step forward in integrating digital assets into the broader U.S. financial system,” the company said in a statement.

Circle stock has gained approximately 484% since its listing in June, as investors have scooped up more shares amid several positive developments for the company.

Retail sentiment on Stocktwits was in the ‘extremely bearish’ (19/100) territory, while retail chatter was ‘extremely high.’

Also See: Goldman Sachs Stock Leaps Ahead After Passing Fed Stress Test With Flying Colors

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