Circle Wins U.S. Trust Bank Approval As Stablecoin Competition Intensifies. Shares Jump After OCC Green Light.

The new charter enables Circle to hold and manage the cash and U.S. Treasury securities backing USDC without relying on third-party banks and custodians, as it has done previously. (Credit: AI-made image)

Circle shares climbed sharply Friday after the stablecoin issuer received approval from the U.S. Office of the Comptroller of the Currency (OCC) to operate as a national trust bank, giving the company greater control over the reserves backing its USDC stablecoin. The approval comes as digital asset companies continue expanding regulated financial services following the passage of new U.S. stablecoin legislation and amid broader efforts to integrate cryptocurrencies into the traditional financial system.

The company said the OCC has authorized it to establish Circle National Trust, allowing Circle to directly manage the reserves supporting its regulated stablecoins, primarily USDC, which currently has more than $73 billion in circulation. Shares rose more than 12% in early trading following the announcement, CNBC reported.