Circle Receives Final Approval from US OCC to Establish National Trust Bank... 'Trust-Only' Model with Restricted Deposits and Loans

On July 10, 2026, Circle Internet Group, the issuer of the stablecoin USDC, reached a significant regulatory milestone by obtaining final approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish 'Circle National Trust.' This approval is seen as the culmination of Circle's long-standing efforts to join the federal banking system.

However, the national trust bank charter approved this time is distinctly different from a typical commercial bank. Circle National Trust holds the status of a strict trust bank and is prohibited from accepting general demand deposits or issuing commercial loans. This is interpreted as a unique regulatory compromise that emerged during the process of integrating blockchain technology into the core of the U.S. financial system.

Circle CEO Jeremy Allaire evaluated this development as a defining step in bringing blockchain technology and digital assets to the core of the U.S. financial system. The OCC's final approval means that Circle is now under the supervision of a single federal regulatory agency, moving beyond state-level regulations. This is expected to play a decisive role in Circle securing institutional trust within the United States.

The OCC's approval of the establishment of Circle National Trust is a decisive step forward in integrating blockchain technology and digital assets into the core of the U.S. financial system. — Jeremy Allaire, CEO of Circle.

While a national trust bank has the authority to provide custodial and trust services, it cannot perform commercial functions such as accepting consumer deposits or providing loans. Furthermore, such institutions are not insured by the Federal Deposit Insurance Corporation (FDIC) and operate solely within their capacity as fiduciaries. This suggests that Circle has made a strategic choice to focus on the secure storage and management of assets rather than entering traditional commercial banking.

Strategic Rationale: Reserve Management and Custody Services

The background behind Circle's pursuit of a non-depository trust charter is the streamlining of the management of USDC reserves, which amount to $73 billion. Through this, Circle has secured a federal regulatory path to manage reserves directly and reduce dependence on third-party banks. This is expected to contribute to increasing the stability of the stablecoin and reducing operational risks.

• Direct custody and management of over $73 billion in USDC reserves
• Acceptance of supervision by a single federal regulator (OCC) instead of varying state-by-state regulations
• Reduction of dependence on third-party financial institutions and mitigation of operational risks
• Establishment of a foundation to provide digital asset custody services for institutional investors

The market responded immediately to this news. Right after the announcement, Circle (CRCL) shares surged 14% in pre-market trading, reflecting high investor expectations for the institutionalization of digital assets. Investors are focusing on the long-term business stability and improved credibility that will result from Circle being under federal regulation.

Circle now stands alongside approximately 60 existing national trust banks and is moving ahead of other crypto companies, such as Paxos and Ripple, that are pursuing similar federal approvals. This is an example showing that regulatory integration is accelerating across the digital asset industry. Jonathan V. Gould, Senior Deputy Comptroller at the OCC, mentioned that new market entrants will increase the dynamism of the banking industry by providing new products and services to consumers.

Maintaining a federal charter requires operational capabilities on a different level than state-level regulatory compliance. Industry experts like Simon Taylor pointed out that obtaining a charter is only a regulatory milestone, and continuous regulatory compliance will be a core operational capability. Circle now faces the challenge of operating federal-level governance and internal control systems at all times.

Circle's next move is expected to be securing a Federal Reserve (Fed) Master Account. If it secures a Master Account, Circle will be able to deposit funds directly with the central bank, further strengthening the stability of USDC. Circle National Trust plans to focus on custody operations for Circle and its affiliates initially, but the possibility of expanding services to external institutions in the future remains open.