Accelerate the layout after the IPO! Stablecoin giant Circle (CRCL.US) applies to establish a National Trust Bank in the US

The Zhitong Finance App learned that after the blockbuster IPO, stablecoin issuer Circle (CRCL.US) said it was seeking to establish a national trust bank in the US. If approved, Circle would be the second cryptocurrency operator to have such a banking license. This license requires approval from the US Monetary Authority. In 2021, the regulator conditionally approved the reorganization of Anchorage Trust Company into Anchorage Digital Bank.

Obtaining a Commonwealth Bank license would allow Circle to keep its reserve funds on its own, which Circle has long wanted: the company has been considering applying for such a license since 2022.

Dante Disparte, Chief Strategy Officer and Head of Global Policy and Operations at Circle, said: “The reason this is important is because the dollar is essentially a product exported by the US to the world. Being able to obtain federal government supervision of stablecoin payment activities and trust activities can not only establish certainty in the US market, but also establish certainty at the international level, and create opportunities and important platforms for regulatory coordination.”

Since US President Donald Trump's administration, which clearly “encourages innovation,” came to power, several fintech companies have begun applying for Bank of America licenses. Earlier this year, small business lender SmartBiz received regulatory approval to transform into a bank. Additionally, Stripe Inc. and Fiserv Inc. have applied for narrow banking licenses in Georgia.

Circle submitted an application to the regulator on June 30, according to a US Monetary Supervisory Service spokesperson. According to the US Monetary Authority's licensing manual, licensing applications usually have a 30-day feedback period, and regulators make decisions within 120 days of receiving a complete application.

Circle said in a press release that if approved, the new bank will be named “First National Digital Currency Bank, NA” (First National Digital Currency Bank, NA). The bank will also provide digital asset escrow services for institutional clients.

According to the company statement, Circle's stablecoin USDC is the second-largest stablecoin by market capitalization, supported by more than $60 billion in reserves, which include cash and short-term US Treasury bonds.

Circle stated in an S-1 filing submitted in May that by the end of March, the company held about 90% of its assets through the Circle Reserve Fund. The fund is managed by BlackRock and is a dedicated money market fund. The documents show that these assets are managed by Bank of New York Mellon.

Since its IPO in early June, Circle's stock price has soared fivefold, benefiting from market optimism about the passing of stablecoin legislation in the US.

Circle said that given that most major financial centers now have “very clear rules,” any stablecoin issuer that remains unregulated has chosen this particular path.

Circle is always seeking licenses and authorizations in markets around the world. In 2015, the company obtained its first digital currency license from the New York State Department of Financial Services. Although the company already holds money transfer licenses issued by various US states, the new license will introduce regulatory mechanisms at the federal level.