TLDR
Circle applies for U.S. banking license to self-custody USDC reserves.
OCC license would allow Circle to hold digital and fiat-based assets.
Circle’s IPO surged 167%, closing at $181.29 with $40B valuation.
Bernstein says Circle is best positioned under upcoming GENIUS Act.
Circle Internet Group has applied for a U.S. national banking license, according to a June 30 report by Reuters. This move could allow the firm to act as a custodian for its USDC reserves and digital assets on behalf of institutional clients.
The application follows Circle’s public listing on June 5 under the ticker CRCL, where the stock surged 167% on its first trading day. The IPO was 25 times oversubscribed and priced above the expected range at $31 per share.
Banking License Aims to Expand Custodial Capabilities
If granted, the national banking license from the U.S. Office of the Comptroller of the Currency (OCC) would authorize Circle to operate a federally regulated banking entity. According to Reuters, this entity will be named First National Digital Currency Bank, N.A.
The license would allow Circle to hold digital and fiat-based reserves supporting its stablecoin, USDC, which is currently the second-largest stablecoin by market capitalization. However, it would not permit Circle to accept traditional cash deposits or issue loans, as conventional banks do.
This step aligns with Circle’s broader plan to align its operations with U.S. banking standards. The company has previously denied reports suggesting it was pursuing other types of banking charters, such as a national trust charter or an industrial bank license.
Circle Builds Momentum Following IPO and Market Growth
Circle went public earlier this month, with its listing described as one of the strongest in recent years. The company’s stock closed at $181.29 on June 28, giving it a market capitalization above $40 billion. The IPO has attracted attention from both traditional financial institutions and digital asset investors.
According to data from The Block, USDC currently has a circulating supply valued at $61.5 billion. Market participants have linked Circle’s growth to increased demand for regulated stablecoins within global payments and digital financial services.
On the same day as the banking application was reported, analysts from Bernstein stated that USDC could become the most regulated stablecoin under the upcoming GENIUS Act. They noted, “Circle has a regulatory headstart that positions it well for compliance-based adoption.”
A Strategic Step Toward Institutional Custody Services
Circle’s move to obtain a national bank charter comes amid a broader industry push for regulatory clarity and institutional participation in crypto custody. A national license would place Circle under direct federal oversight, making it easier for the firm to work with regulated partners.
The company has positioned itself to serve institutional clients by offering compliant digital asset infrastructure. The new license could enable Circle to safeguard USDC reserves directly, without the need for third-party custodians.
Though Circle would not be allowed to engage in traditional lending, this structure would strengthen its standing in offering crypto custody and token management services for both private and public entities.
Regulatory and Market Outlook
The Office of the Comptroller of the Currency is reviewing multiple banking charter applications involving digital assets, as stablecoin adoption expands. If approved, Circle would join a small group of firms allowed to manage crypto reserves under a national license.
Reuters did not specify a timeline for the OCC’s decision, and Circle has not issued a public statement about the application. However, the move indicates the firm’s interest in deepening its presence in regulated financial markets, especially following its recent IPO.
Circle’s application for a national bank license is part of its strategy to manage and custody its own USDC reserves, while also offering digital asset custody services to institutional clients under federal regulation.
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