Circle has received conditional approval from the Office of the Comptroller of the Currency (OCC) to establish a U.S. National Trust Bank. The new entity, named First National Digital Currency Bank, N.A., will operate as a federally regulated trust bank and oversee the management of the USDC reserves on behalf of Circle's U.S. issuer.

This development anchors Circle's custody and settlement infrastructure within the U.S. banking system, a move designed to enhance trust and scalability, particularly for institutional clients. The approval follows Circle's history of regulatory engagement, including being the first company to receive a BitLicense from the New York Department of Financial Services (NYDFS) in 2015 and its recent compliance with the EU's MiCA framework.

The OCC also granted similar conditional approvals to other major crypto firms, including Ripple, BitGo, Fidelity Digital Assets, and Paxos, signaling a broader trend of bringing digital asset companies under the federal regulatory umbrella. However, these charters do not permit the firms to take deposits or access FDIC insurance, a point of contention for traditional banks who have argued against a perceived lighter regulatory standard for these new entrants.