Circle wins OCC trust charter with limits on bank powers

Circle has won US approval to open a national trust bank, a move that gives the USDC issuer more control over custody infrastructure but not the full powers of a commercial bank. For crypto investors, that means tighter federal oversight around part of Circle's operations, without any immediate change to how USDC is distributed or used.

The Office of the Comptroller of the Currency granted final approval on July 10. Circle said the entity's legal name will be First National Digital Currency Bank, N.A., doing business as Circle National Trust. At launch, the bank will provide fiduciary digital asset custody for Circle and its affiliates under OCC supervision.

The charter does not let Circle accept ordinary deposits, make loans, offer checking or savings accounts, or provide FDIC-insured retail banking services. Circle also has not said when the bank will open. It has only said that direct custody for a limited number of institutions could come later, mainly for banks and other regulated financial firms, if demand supports it.

USDC reserve management is also a future option, not an opening-day function. Circle says the charter could reduce reliance on outside firms and lower counterparty risk, but it has not disclosed timing, savings, or any partner changes.