Circle files for establishment of ”trust bank” in the U.S. to directly manage USDC reserves

Circle, the stablecoin issuer of USDC, applied for permission to establish a "national trust bank" in the United States on the 30th (local time). This bank will manage the reserves of USDC.
The company also plans to provide digital asset custody services to institutions. According to reports, if the application is approved by the Office of the Comptroller of the Currency (OCC), Circle will be federally regulated.
The bank plans to operate under the name "First National Digital Currency Bank" with trust institution status.
"We are further strengthening the infrastructure that supports the issuance and distribution of USDC and providing digital asset custody services for institutional investors," Circle said in a statement.
National trust banks cannot deposit cash or provide loans like traditional banks, but they provide custodial services on a national basis under the supervision of the OCC.
The benefit of this is that the company will be able to offer digital assets to its customers without having to apply for separate state licenses for money transmission or digital assets.
Wright Tremaine explained that the national trust bank model is a structure that would allow digital asset companies to operate with federal-level charter without going beyond the current financial regulatory structure.
Circle explained that the trust bank license application was in response to the GENIUS bill currently being pushed through the U.S. Congress. The bill provides for the issuance and operation of stablecoins.
The bill, which attempts to create a clear regulatory framework for the FDA, passed the Senate on June 17 and is currently awaiting a vote in the House of Representatives.
Jeremy Allaire, co-founder and CEO of Circle
Allaire explained that this is a "preemptive measure to strengthen USDC infrastructure and align with regulations as stablecoin regulations in the United States get underway."