Circle wins final OCC approval to launch national trust bank

Circle Internet Group (NYSE: CRCL) has secured final approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank.

The arrangement, which sent Circle’s CRCL stock up more than 14% in pre-market trading, will bring the USDC issuer under direct federal banking supervision for the first time.

Is Circle becoming a bank?

The Office of the Comptroller of the Currency (OCC) has given its final approval to Circle (NYSE: CRCL), allowing the company to run a national trust bank carrying the legal name First National Digital Currency Bank, N.A. The regulator first gave a conditional go-ahead in December of 2025.

This move brings USDC custody under direct federal supervision for the first time. The new entity will do business as Circle National Trust, according to Circle’s announcement.

The bank will only handle custody of digital assets for Circle and its affiliates, and it will not take deposits or make consumer loans the way a commercial bank does. However, Circle’s business plan includes provisions to extend custody later to a limited set of institutional clients such as banks and regulated derivatives firms, but only “depending on demand.”

Circle’s USDC is backed by cash and short-term U.S. government securities, which are currently in the custody of Circle’s existing regulated entities. Moving them under the trust bank would put reserve management under federal oversight, but Circle has not said when, or whether, it will take that step.

Jeremy Allaire, Circle’s co-founder, chairman and CEO said federal supervision gives financial institutions “clarity and confidence” to build on public blockchains.

New services that Circle intends to offer will be subject to further regulatory approvals and operational work before they can go live.

Following the news of the OCC approval, Circle’s stock shot up as much as 15% pre-market.

Are other crypto companies opening banks?

Cryptopolitan reported that apart from Circle, the OCC handed conditional charters to five crypto firms in December 2025, including Ripple, Paxos, BitGo and Fidelity Digital Assets. Comptroller of the Currency Jonathan Gould stated that the new entrants are a benefit as they “provide access to new products, services and sources of credit to consumers.”

The Bank Policy Institute (BPI) is considering taking legal action against the OCC. It argues that crypto trust banks could offer bank-like products without carrying the same obligations as full-service lenders.

Other banking groups have also asked the regulator to narrow the policy, citing financial stability and consumer protection.

Despite this pushback, Nomura’s Laser Digital and Sony Bank’s Connectia Trust have since secured conditional approvals of their own. The OCC’s public docket shows that there are pending applications from firms including Morgan Stanley’s digital trust arm and Revolut’s U.S. bank.

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