Circle surges 5% on OCC approval for national trust bank

Circle received final approval from the US Office of the Comptroller of the Currency to operate as a national trust bank, a regulatory milestone that sent its stock up more than 5% in pre-market trading.

Circle Internet Financial Ltd. received final approval from the US Office of the Comptroller of the Currency to establish a national trust bank, sending its shares up more than 5% in pre-market trading on July 10.

The OCC's approval, granted under the National Bank Act, allows Circle to offer fiduciary and custody services alongside its stablecoin operations, the regulator said. The national trust charter places the company under direct OCC supervision, subjecting it to federal banking standards including capital requirements, liquidity mandates, and regular examinations.

Circle's USDC stablecoin, the second-largest by market capitalization with a circulating supply of roughly $33 billion, will operate within this federally regulated framework. The approval follows a multi-year application process and positions Circle among a small group of crypto-native firms to secure a federal banking charter.

The decision marks a turning point for stablecoin regulation in the US, where policymakers have debated whether digital dollar issuers should be regulated as banks or under separate payment stablecoin legislation. Circle's charter could serve as a template for other issuers seeking federal oversight.

The approval positions Circle to compete directly with traditional custodians and trust banks for institutional crypto business, potentially accelerating USDC adoption among regulated financial firms. The bank is expected to begin operations under the charter within the current quarter.

This article is for informational purposes only and does not constitute investment advice.