Circle applies to OCC to launch First National Digital Currency Bank

Circle Internet Group, Inc., the issuer of the USDC stablecoin, has filed an application with the U.S. Office of the Comptroller of the Currency (OCC) to establish the First National Digital Currency Bank, N.A. The move, announced on Monday, aims to enable Circle to self-custody its USDC reserves and provide institutional-grade digital asset custody services, marking a significant step toward integrating cryptocurrency infrastructure with traditional finance.

If approved, the national trust bank charter would allow Circle to manage its USDC reserves directly, reducing reliance on third-party custodians like The Bank of New York Mellon and BlackRock, which currently hold and manage Circle’s reserve assets. Unlike traditional banks, the proposed entity would not accept cash deposits or issue loans, focusing instead on custody services for tokenized assets, such as stocks and bonds represented on blockchain networks, rather than cryptocurrencies like Bitcoin or Ethereum.

Circle’s CEO, Jeremy Allaire, emphasized the company’s commitment to regulatory compliance and transparency, stating,

“Circle has long sought to uphold the highest standards of trust, transparency, governance, and compliance. Becoming a publicly traded company is a significant part of that, becoming a national trust company is again a continuation of that.”

The application follows Circle’s successful initial public offering (IPO) on June 5, 2025, which valued the company at approximately $44 billion, with shares trading at $181.

The proposed First National Digital Currency Bank would align Circle with a small group of crypto firms, such as Anchorage Digital, that hold national trust bank charters, bringing the company under direct OCC oversight. This regulatory framework would enhance trust among institutional clients and support Circle’s goal of creating a transparent and efficient internet financial system.

The move comes as Congress nears passage of a federal stablecoin regulatory framework, with the Senate approving a bill in June 2025 and the House expected to vote this summer. The legislation would mandate stablecoin issuers to back tokens with liquid assets and disclose reserve compositions monthly, further aligning with Circle’s existing practices of monthly reserve attestations by Big Four accounting firms.

Some users note that a national trust bank charter could position USDC as a trusted digital cash solution for traditional financial institutions. However, some analysts caution that Circle’s valuation and business model, heavily reliant on interest from USDC reserves, may face scrutiny amid fluctuating interest rates.