Circle Becomes First to Convert OCC Nod Into Actual Crypto Bank Charter 🏦

Circle Internet Group ($CRCL) received final approval from the U.S. Office of the Comptroller of the Currency (OCC) on Friday to establish First National Digital Currency Bank, N.A., a national trust bank that will operate under the name Circle National Trust, making the USDC issuer the first crypto-native firm among the OCC's December 2025 cohort of conditional applicants to reach the operational stage. "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. He added that federal oversight would provide greater transparency, governance, and confidence for institutions building on public blockchains, and called the day "historic," adding: "This is all part of building a new fundamental money layer for the internet."

Under its approved business plan, Circle National Trust will initially provide fiduciary digital asset custody services for Circle and its affiliated companies, including stablecoins and tokenized securities representing real-world assets. The bank could later expand those services to a limited group of institutional customers—including banks and regulated financial institutions such as derivatives firms—if demand develops. Circle said the trust bank structure is also designed to support future management of the USDC Reserve, bringing those operations under federal oversight if implemented. Allaire referenced serving custodial services for stablecoins and tokenized real-world asset securities as part of the bank's scope. Other OCC conditional approval recipients from December 2025 included Ripple, BitGo, Fidelity Digital Assets, and Paxos; Sony Bank received conditional approval on Thursday.

Circle said it became the first company to receive a BitLicense from the New York Department of Financial Services in 2015, and later became the first global stablecoin issuer to comply with the European Union's Markets in Crypto-Assets Regulation (MiCA) framework in 2024. The company has also secured regulatory approvals in the United Kingdom, Singapore, Bermuda, Canada, and Abu Dhabi. At publishing time, USDC is the second-largest stablecoin by market capitalization at $73.3 billion, according to CoinGecko, up 16.7% from $62.8 billion a year earlier but down 2.5% year-to-date from $75.2 billion. Circle's broader competitive landscape shifted late last month when more than 140 financial and technology firms, including Coinbase, Mastercard, and Visa, aligned behind a competing stablecoin called Open USD (OUSD) set to launch later this year, sending $CRCL shares down 18% on the Tuesday prior; Clear Street analysts said in a Wednesday note the selloff looked overdone without evidence OUSD could gain real traction.

Circle Internet Group ($CRCL) rose roughly 16% in pre-market trading after the announcement, climbing above $73 after Thursday's close at $63, according to Yahoo Finance data. After the opening bell, shares traded 8.4% higher on the day at around $68.40. Coinbase CEO Brian Armstrong praised the development on social media; Coinbase has a revenue-sharing agreement with Circle that splits interest income from the assets backing USDC, largely U.S. Treasuries. The approvals have drawn criticism on Capitol Hill, with Sen. Elizabeth Warren (D-MA) among lawmakers arguing the charters were improperly granted, while trade groups including the Digital Chamber have countered that such criticism is misguided. Unlike a traditional commercial bank, a national trust bank does not operate as a retail lender or accept consumer deposits, but specializes in fiduciary services, asset custody, and trust activities under OCC supervision.