Circle Internet Group (NYSE:CRCL) shares rose 7% after the company announced it received approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish its own national trust bank, a move aimed at strengthening the infrastructure supporting its USDC stablecoin.
The company said the OCC approved the establishment of First National Digital Currency Bank, which will operate under the name Circle National Trust. The bank will operate under direct federal oversight from the OCC, which regulates national banks and national trust banks.
Circle said the approval will allow Circle National Trust to provide fiduciary digital asset custody services for Circle and its affiliates when it begins operations. The bank’s approved business plan also allows for the possibility of eventually offering custody services to a limited number of institutional clients, including banks and other financial institutions.
The company said the charter is also designed to support potential future capabilities, including management of the USDC Reserve, which would place those operations under federal regulatory oversight.
“OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the U.S. financial system,” Circle CEO Jeremy Allaire said in a statement.
“Federal oversight of our trust bank sets a new standard for transparency, governance, and scale for Circle’s infrastructure and unlocks a new phase of adoption, where leading financial institutions can build on public blockchains with clarity and confidence.”
Circle said the national trust bank structure aligns digital asset custody operations with the framework used by traditional national trust banks, including fiduciary standards for safeguarding client assets.