Stablecoin Issuer Circle Gains Bank Status, Stock Surges 12%
The approval lets Circle manage USDC reserves under federal oversight and sent shares up more than 12% in early trading, the company said.
- On Friday, Circle received approval from the U.S. Office of the Comptroller of the Currency to establish Circle National Trust, placing the company's USDC infrastructure under direct federal oversight.
- Previously, Circle relied on third-party custodians to hold Treasury assets backing USDC, but the new charter enables direct management of reserves for the stablecoin, which has more than $73 billion in circulation.
- Shares of Circle gained more than 14% following the news, while Coinbase, a major distributor of USDC, stands to benefit from the broader institutional adoption of regulated stablecoins.
- Circle National Trust will offer fiduciary digital asset custody services, though the charter does not greenlight the company to operate as a commercial bank that takes deposits or issues loans.
- This federal banking charter signals a more legitimized digital asset landscape, reflecting a regulatory shift in Washington that began nearly a year ago with the GENIUS Act.
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Circle gets green light to operate as a trust bank, strengthening its position in the stablecoin race - Tech Startups
Circle has cleared a major regulatory hurdle that could reshape its role in digital finance. The company said Friday it received approval from the U.S. Office of the Comptroller of the Currency (OCC) to operate as a national trust bank, […] The post Circle gets green light to operate as a trust bank, strengthening its position in the stablecoin race first appeared on Tech Startups.
Why Circle Internet Group stock popped today
Circle Internet Group (Nasdaq: CRCL), the stablecoin issuer behind USDC, said today that it has received federal approval to operate as a specific type of bank. The move marks a major milestone in the further legitimization of digital assets like cryptocurrencies. But don’t expect to be opening a Circle checking account anytime soon. Here’s what you need to know. What’s happened? Today, Circle Internet Group announced that it has received approv…
Circle Wins U.S. Trust Bank Approval As Stablecoin Competition Intensifies. Shares Jump After OCC Green Light.
The move comes as crypto firms and traditional financial institutions compete to build regulated stablecoin infrastructure following clearer U.S. rules for digital assets.
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