Circle wins final OCC approval for U.S. national trust bank

Circle Internet Group received final approval from the U.S. Office of the Comptroller of the Currency on Friday, July 10, 2026, to establish a national trust bank, according to the company. The new institution will operate as Circle National Trust, with the legal name First National Digital Currency Bank, N.A., per Circle's announcement. The approval moves the issuer of the $73.2 billion USDC stablecoin from a patchwork of state rules toward a federal framework. Circle shares rose 8.4% to around $68.40 after the opening bell, according to Yahoo Finance, after reaching $73.80 in pre-market trading. CEO Jeremy Allaire called it a historic day for Circle.

Background

The OCC approval follows a broader shift in how U.S. financial regulators treat digital assets under President Donald Trump's second administration. According to decrypt, regulators have dramatically changed their stance, triggering a historic wave of banking access for crypto firms. In December 2025, the OCC granted conditional charter approvals to Circle, Ripple, Paxos, BitGo and Fidelity Digital Assets, crypto_news_dot reported. Circle had to meet the OCC's pre-opening conditions before receiving final authorization, and it submitted its original application on June 30, 2025. Sony Bank signaled on Thursday that it had received conditional OCC approval to establish a national trust bank, decrypt reported. The approvals have sparked tensions on Capitol Hill, with Sen. Elizabeth Warren (D-MA) among lawmakers arguing the charters were improperly granted, while trade groups like the Digital Chamber contend the criticism is misguided. Banking groups have also questioned the OCC's policy. The Bank Policy Institute considered legal action, arguing crypto trust banks could offer bank-like products without facing the same rules as full-service lenders, according to crypto_news_dot. Circle's approval also follows the GENIUS Act, which established reserve, reporting and compliance rules for approved stablecoin issuers.

What happened

Circle announced on Friday, July 10, 2026, that it received final approval from the OCC to establish a national trust bank, according to decrypt. The company described the approval as a key regulatory milestone expected to unlock new opportunities for safeguarding customer assets and managing reserves. crypto_news_dot reported that the new institution will operate as Circle National Trust, while its legal name remains First National Digital Currency Bank, N.A. The OCC approval places Circle National Trust under direct federal supervision. Circle said the bank will initially offer fiduciary digital asset custody services to Circle and its affiliates, and it will not operate like a traditional commercial bank that accepts deposits and provides consumer loans. However, it may later provide custody services to a limited group of institutional clients, with an approved business plan naming banks, financial institutions and regulated derivatives organizations as possible customers. Circle said the charter could also support future management of the reserves backing USDC, though it has not confirmed when or whether the bank will assume that role. CEO Jeremy Allaire, in a post on X cited by decrypt, said, "Today is a historic day for Circle," adding, "This is all part of building a new fundamental money layer for the internet." He noted Circle will offer custodial services for digital assets via its bank, referencing stablecoins and tokenized securities representing real-world assets. crypto_news_dot reported Allaire described the approval as "a defining step" in bringing blockchain systems into the U.S. financial sector, saying federal supervision would provide clearer governance for institutions using public blockchains. Coinbase CEO Brian Armstrong praised the development, according to decrypt.

Market impact

Circle shares changed hands 8.4% higher on the day at around $68.40 shortly after the opening bell, according to Yahoo Finance data cited by decrypt. During pre-market trading, the stock jumped as high as $73.80, touching its highest point in over a week. The approval covers infrastructure underpinning USDC, which decrypt described as crypto's second-largest stablecoin with a market value of $73.2 billion and commonly used throughout the U.S. Circle said the OCC approval brings that infrastructure "into a proven federal banking framework designed to ensure safety, soundness, and transparency." The sources did not report any specific flows into or out of USDC, nor did they provide trading volumes or other price levels beyond the Circle share figures. The market reaction was therefore concentrated in Circle's equity, with the sources offering no data on stablecoin supply changes or broader crypto market moves. Separately, decrypt noted that late last month more than 140 financial and technology firms, including Coinbase, Mastercard and BlackRock, backed Open USD, a stablecoin unveiled by an independent operator called Open Standard and designed to address perceived drawbacks with current operators, including the distribution of interest earned on reserves.

Why it matters

The approval shifts Circle's operations from a patchwork of state-by-state rules to a national framework, according to decrypt, and places Circle National Trust under direct federal supervision. crypto_news_dot reported that the charter adds a federally supervised custody layer to Circle's existing regulated entities and reserve arrangements, and that future reserve management through the trust bank could provide more direct oversight of assets backing USDC. The stablecoin is designed to maintain a $1 value through reserves that include cash and short-term U.S. government securities. Circle said the national charter would align its infrastructure with fiduciary standards applied to traditional trust banks. The sources also noted limits: a national trust charter does not make USDC a bank deposit, nor does it provide federal deposit insurance to token holders, and it does not mean Circle National Trust can immediately offer every service in its long-term plans. New products remain subject to regulatory requirements, internal controls and further operational work. The approval also lands amid pushback from banking groups and lawmakers over the OCC's charter policy.