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Just weeks after its blockbuster IPO, USDC stablecoin issuer Circle announced Monday that it is seeking approval from the Office of the Comptroller of the Currency, or OCC, to launch a national trust bank.
Circle is seeking to establish First National Digital Currency Bank, N.A., which would fall under OCC oversight and supervise management of the reserves that underpin USDC, the second-largest stablecoin by market cap with over $61 billion worth of dollar-pegged tokens in circulation.
According to a statement by Circle, a federal trust charter would also help give USDC compliance under the GENIUS Act stablecoin legislation, which recently passed the Senate.
“Establishing a national digital currency trust bank of this kind marks a significant milestone in our goal to build an internet financial system that is transparent, efficient and accessible,” said Circle co-founder, Chairman, and CEO Jeremy Allaire, in a statement.
“By applying for a national trust charter, Circle is taking proactive steps to further strengthen our USDC infrastructure," he added. "Further, we will align with emerging U.S. regulation for the issuance and operation of dollar-denominated payment stablecoins, which we believe can enhance the reach and resilience of the U.S. dollar, and support the development of crucial, market neutral infrastructure for the world’s leading institutions to build on.”
Editor's note: This story is breaking and will be updated with additional details.