Circle's Trust Bank Approved
OCC Approves Circle to Form National Trust Bank for USDC Custody and Fiduciary Standards
Key Points
Circle was approved to form First National Digital Currency Bank, N.A., a de novo national trust bank under Circle National Trust, charter #25361, headquartered in New York, to manage USDC reserves and provide fiduciary custody.
A separate limited-purpose trust company will be established in New York to handle USDC issuance, creating a cleaner organizational split between the stablecoin issuer and reserve management.
On the same day, the OCC granted Ripple a national trust bank charter (Ripple National Trust Bank), signaling a broader regulatory push to authorize crypto-focused bank charters.
Circle filed its application on June 30, 2025, and received conditional approval about five-and-a-half months later, illustrating a relatively rapid regulatory process for a crypto-focused charter.
The U.S. Office of the Comptroller of the Currency has given Circle Internet Group final approval to open a national trust bank. The new entity, called Circle National Trust, will custody the reserves behind USDC — one of the world's largest stablecoins — under federal oversight for the first time. crypto.news reported the approval marks a landmark moment for crypto's entry into mainstream U.S. banking.
The same day, the OCC also handed a national trust bank charter to Ripple, signaling a broader regulatory push to bring crypto firms into the traditional banking system. Circle's stock rose on the news, reflecting strong investor enthusiasm for the development.
What Circle National Trust Will Actually Do
Circle National Trust will not take deposits or offer FDIC-insured accounts. Instead, it will act as a fiduciary — a trusted manager — for the reserves that back USDC. That means holding assets on behalf of USDC holders under strict federal rules. The bank will also serve as a collateral trustee, according to Crypto Briefing.
A separate limited-purpose trust company will be set up in New York specifically to handle USDC issuance. This creates a clean split between the company that issues the stablecoin and the entity that manages its reserves. Analysts say this structure adds transparency and reduces conflicts of interest.
Charter Details: A Fast Track Through the OCC
Circle filed its bank charter application on June 30, 2025. The OCC granted conditional approval roughly five and a half months later — a fast turnaround for a first-of-its-kind crypto banking license. The charter is designated number 25361, and the bank's formal name is First National Digital Currency Bank, N.A., headquartered in New York, according to Crypto Briefing.
The relatively quick approval process reflects the current regulatory climate under President Donald Trump's administration, which has pushed for clearer rules for digital assets. The OCC's willingness to move fast on two crypto charters in a single day shows how much the landscape has shifted in Washington.
Ripple Also Gets a Charter — A Watershed Day for Crypto Banks
On the same day Circle got its approval, the OCC granted Ripple a national trust bank charter called Ripple National Trust Bank. Two major crypto firms receiving federal bank charters on the same day is unprecedented. Market Screener called it a sign of a broader regulatory push to authorize crypto-focused bank charters.
Industry observers say the twin approvals could open the door for more crypto companies to apply for similar charters. Getting federal approval means these firms play by the same rules as traditional banks — which could boost trust among large institutional clients.
Why USDC Reserves Under Federal Oversight Matter
USDC is a stablecoin — a digital dollar pegged 1:1 to the U.S. dollar. Circle backs every USDC token with real assets like cash and short-term Treasury bonds. Until now, there was no federal bank overseeing how those reserves were managed. Circle National Trust changes that by putting reserve management under OCC supervision, according to crypto.news.
This matters for anyone who uses USDC. Federal oversight means more accountability, regular audits, and fiduciary standards — the same protections that govern traditional trust banks. For institutional clients like hedge funds and asset managers, that level of oversight could make USDC far more attractive as a tool for large transactions.
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