Circle Wins Final OCC Approval for National Trust Bank, Adding a Federally Supervised Custody Option for USDC

Circle Internet Group said it has received final authorization from the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank operating as Circle National Trust. In a July 10 announcement, the company noted the legal entity will remain First National Digital Currency Bank, N.A. Under the OCC's final signoff, Circle National Trust will sit under direct federal supervision, alongside other national banks and national trust banks. The trust bank will start by providing fiduciary digital-asset custody services for Circle and its affiliates. Circle stressed it is not being chartered as a full commercial bank and will not take deposits or make consumer loans. Circle said it may eventually extend custody services to a limited group of institutional clients. Its approved business plan lists other banks, financial institutions and regulated derivatives firms as potential customers. The company also said the charter could support future management of the reserves backing USD Coin (USDC), though it did not commit to a timeline or confirm that reserve management will move into the trust bank. Circle emphasized that USDC continues to operate through its existing regulated entities and current reserve arrangements. If Circle National Trust were to take on reserve custody or management, it would add a federally supervised layer over assets supporting USDC's $1 peg, including cash and short-term U.S. government securities. CEO Jeremy Allaire called the approval "a defining step" toward integrating blockchain systems with the U.S. financial sector, arguing that federal oversight can clarify governance for institutions interacting with public blockchains. Circle underscored that a national trust charter aligns the company's infrastructure with fiduciary standards used for traditional trust banks, which safeguard client assets but typically do not provide the full range of commercial banking services. The charter does not make USDC a bank deposit and does not extend FDIC insurance to token holders. The company added that Circle National Trust will not be able to launch its full long-term product roadmap immediately. New services will require additional regulatory approvals, internal controls and operational readiness. Circle submitted its application on June 30, 2025, and said it met the OCC's pre-opening conditions before receiving final authorization. The OCC previously issued conditional national trust charter approvals in December 2025 to Circle and other digital-asset firms, including Ripple, Paxos, BitGo and Fidelity Digital Assets. The approval comes after passage of the GENIUS Act, a federal framework for payment stablecoins that sets reserve, reporting and compliance requirements for authorized issuers. Circle said USDC adoption has grown across payments, settlement and regulated financial flows, and that the charter supports the token's use in payments, capital markets and settlement. At the same time, the OCC's willingness to grant national charters to crypto firms has drawn criticism from traditional banking groups. The Bank Policy Institute has indicated it may pursue legal action, arguing that crypto trust banks could offer bank-like products without facing the same rules as full-service lenders. Other banking organizations have cited concerns around financial stability, consumer protection and the scope of national trust charters. Circle also pointed to its broader regulatory footprint, citing approvals in the EU, Singapore, Bermuda, Canada, the U.K. and Abu Dhabi. The company said it was the first to receive a New York BitLicense in 2015 and has been among the earliest major stablecoin issuers to align with the EU's Markets in Crypto-Assets framework. Key watch items include whether Circle shifts USDC reserve management into Circle National Trust and on what timeline, when custody is opened to external institutional clients, any legal or regulatory pushback tied to the OCC's charter policy, and the pace of product launches requiring supervisory approvals. Bottom line: The OCC's final authorization gives Circle a federally supervised national trust charter that strengthens its custody credentials and could reshape parts of USDC's infrastructure, while leaving open questions around reserve management, product scope and industry pushback.