Circle Applies for Federal Trust Bank, Upgrading Its Stablecoin Empire
On June 30, 2025 (Eastern Time), Circle (ticker: CRCL), the issuer of stablecoin USDC and the “first stablecoin stock,” announced a major move: it has formally applied to the U.S. Office of the Comptroller of the Currency (OCC) to establish a federal trust bank named “First National Digital Currency Bank, N.A.”
This Bank Is “One of a Kind”: A “Special Steward” for Digital Assets
According to Circle’s official announcement, if approved, this bank will become Circle’s first federally regulated custodian entity. Simply put, its core missions are twofold:
– Manage USDC’s “piggy bank” : Independently oversee over $60 billion in USDC reserve assets (previously custodied by traditional banks like BNY Mellon);
– Serve institutional clients : Provide digital asset custody services for institutions, especially tokenized bonds, stocks, and other “on-chain assets.”
Notably, it’s not like the traditional banks where we deposit money — it can’t take cash deposits or issue loans. Instead, it’s closer to a “federal trust company” model. Currently, only Anchorage Digital holds a similar license in the U.S., and if successful, Circle will be the first stablecoin issuer to own its own custody license.
Why Apply? Circle’s Ambition for a “Digital Dollar OS”
This isn’t just a routine business adjustment; it’s a key strategic step for Circle as a “stablecoin infrastructure provider.”
– Regulatory backdrop : The recently passed GENIUS Act (mid-June) is pushing stablecoins into an era of “strong regulation and full transparency,” requiring custodial assets to be segregated, information disclosed, and institutions to meet regulatory qualifications. Circle’s license application aligns perfectly with this trend.
– Seizing core autonomy : With its own custody bank, Circle can bypass traditional banking intermediaries, take full control of USDC reserves, reduce external dependencies, and boost operational stability.
Ultimately, Circle aims to build a “digital dollar operating system” — whether issuing USDC, custodying real-world assets (RWAs), or partnering with Visa/Stripe for payment settlements, it needs a more compliant, self-controlled infrastructure. This move is about establishing its role as the “on-chain dollar executor.”
Market Reactions: Optimism Meets Caution
The news has sparked heated debate in the industry:
– Optimists call it a “regulatory integration” milestone : Crypto investor Mr. Man notes that if approved, Circle (as a federal trust bank) could directly access the Federal Reserve’s payment system. USDC would then flow freely through the Fed’s “financial pipelines” like traditional bank funds, no longer relying on intermediaries. Tech analyst ALLINCRYPTO adds that institutional clients would find it easier to custody digital assets via Circle, making USDC more attractive to mainstream enterprises.
– Critics warn of “overreach” : Citi analysts argue that while the long-term trend is positive, stablecoins’ business model is still unproven, and Circle’s current market value may be overinflated. Data from S3 Partners shows short interest in Circle has risen since its IPO, making it one of the most shorted stocks in the U.S. blockchain sector.
Conclusion: Circle Isn’t Trying to Be a Bank — It Wants to Be “Dollar’s On-Chain Architect”
Circle isn’t aiming to be a traditional bank; it wants to be the “architect” of new digital dollar financial carriers: no lending, no deposits, just focusing on infrastructure for on-chain dollars, on-chain assets, and on-chain settlements. Unlike Tether, which focuses on trading scenarios, Circle is betting on how stablecoins will be integrated into national, institutional, and even clearing system “infrastructure maps” over the next decade.
IPO was for funding, licensing is for compliance — and whether it becomes the “sovereign agent of on-chain dollars” now hinges on this license.
Read More《600亿美元资产自主托管，“稳定币第一股”Circle申请联邦信托银行牌照》
This content is AI-generated and does not constitute investment advice. Please exercise your own rational judgment.
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