Circle Wins U.S. Trust Bank Approval As Stablecoin Competition Intensifies. Shares Jump After OCC Green Light.

Circle shares climbed sharply Friday after the stablecoin issuer received approval from the U.S. Office of the Comptroller of the Currency (OCC) to operate as a national trust bank, giving the company greater control over the reserves backing its USDC stablecoin. The approval comes as digital asset companies continue expanding regulated financial services following the passage of new U.S. stablecoin legislation and amid broader efforts to integrate cryptocurrencies into the traditional financial system.

The company said the OCC has authorized it to establish Circle National Trust, allowing Circle to directly manage the reserves supporting its regulated stablecoins, primarily USDC, which currently has more than $73 billion in circulation. Shares rose more than 12% in early trading following the announcement, CNBC reported.

The new charter enables Circle to hold and manage the cash and U.S. Treasury securities backing USDC without relying on third-party banks and custodians, as it has done previously. However, the approval does not permit Circle to operate as a traditional commercial bank that accepts deposits or makes loans, according to the company.

Circle said operating under a national trust bank charter places the company under federal supervision by the OCC instead of navigating separate state regulatory regimes. That change simplifies oversight for a business operating across the United States and aligns Circle with other digital asset firms that have sought national banking approvals.

The approval reflects a broader shift across the cryptocurrency industry as companies move beyond offering trading platforms and financial applications toward building regulated financial infrastructure. In recent months, firms including Coinbase, BitGo, Fidelity Digital Assets, Ripple, and Paxos have either received regulatory approvals or pursued similar banking-related applications, The Wall Street Journal reported.

The development also follows growing regulatory clarity for stablecoins in Washington. The GENIUS Act, signed into law earlier this year, established the first comprehensive federal framework governing payment stablecoins in the United States. The legislation sets standards for reserve requirements, supervision, and consumer protections, creating a clearer operating environment for issuers, according to Reuters.

The new legal framework has intensified competition across the financial sector. Traditional banks and payment companies have increasingly explored issuing their own stablecoins, aiming to retain payment activity within their own platforms while expanding digital financial services. That trend has increased competitive pressure on existing issuers such as Circle, whose USDC remains the world’s second-largest dollar-backed stablecoin behind Tether’s USDT, according to CoinDesk.

Circle has increasingly positioned itself as a regulated infrastructure provider for institutional clients rather than simply a stablecoin issuer. The trust bank charter strengthens that strategy by giving the company direct responsibility for managing reserve assets under federal oversight instead of depending on outside custodians.

The announcement comes just weeks after Circle continued expanding its presence in public markets following its initial public offering, with investors closely watching how regulated stablecoin issuers adapt to the new U.S. legal framework. Market participants have increasingly viewed regulatory approvals as an important competitive advantage as institutional adoption of digital assets grows.

The OCC’s approval also highlights the federal government’s broader approach toward integrating regulated digital asset businesses into the U.S. financial system. The agency has expanded engagement with cryptocurrency firms over the past year while maintaining oversight of trust banks that safeguard customer assets without conducting traditional retail banking activities, according to the Office of the Comptroller of the Currency.