Circle Wins OCC Approval for Federal Crypto Custody Bank

Circle National Trust will initially provide fiduciary custody services for the company and its affiliated businesses. The approved plan also permits later services for a limited number of regulated institutional customers. Potential customers include banks and other financial institutions that require federally supervised digital asset custody.

The charter also creates a route for Circle to manage reserves supporting the USDC stablecoin under OCC oversight. The trust bank will follow its approved plan as it develops additional functions and compliance systems. Reserve management is a future capability, not an immediate service, the company said.

USDC is the second-largest dollar-pegged stablecoin by reported circulation, with about $73.2 billion in circulation. Tether’s USDT holds roughly $184.1 billion. The bank approval could support custody and reserve operations tied to the issuer’s regulated infrastructure.

Several crypto companies have pursued federal charters, trust licenses, and custody approvals during the industry’s regulatory expansion. Kraken has sought federal permissions. Crypto.com secured an OCC license for regulated crypto custody in February. BitGo, Ripple, Paxos, and Fidelity Digital Assets each received conditional OCC approvals in December. Circle now joins that group with final approval for its national trust bank.

The approval gives the company a federally supervised entity for custody and possible future reserve management. Circle National Trust will open under OCC oversight and operate within the limits of its approved business plan.