Circle Wants to Become a Bank — Here's Why It Matters

Circle Internet Group, the company behind the USDC stablecoin, has applied for a national trust bank charter in the U.S. This big step comes shortly after Circle's successful IPO, which saw its stock surge by 484% in June.

If approved by regulators, Circle will launch the First National Digital Currency Bank, N.A. This would make Circle one of the few crypto companies—alongside Anchorage Digital—to receive such a license.

So what does this mean? A national bank charter would allow Circle to do more than just issue stablecoins. It could also offer custody services for digital assets like tokenized stocks and bonds. Importantly, the company will still keep USDC reserves with major partner banks, and there are no plans to change that setup.

This move also aligns with new U.S. legislation—the GENIUS Act—which sets clearer rules for stablecoins. Being a federally regulated bank would help Circle stay compliant and continue growing its role in the financial system.
CEO Jeremy Allaire said this charter would help Circle build a more open, efficient, and trusted financial system using blockchain. In short, with this step Circle wants to bridge the gap between crypto and traditional finance, bringing digital dollars to the mainstream.