Circle Internet Group has received final approval from the US Office of the Comptroller of the Currency to establish Circle National Trust. The federally regulated institution will officially operate under the formal name First National Digital Currency Bank, or FNDCB.
Circle applied for the charter in June 2025. The approval allows the USDC issuer to expand its digital asset custody infrastructure under federal supervision. Circle CEO Jeremy Allaire said the decision is a major step for blockchain technology in the US financial system.
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What Circle National Trust Will Offer
Under the approved plan, the Circle National Trust will initially offer fiduciary custody services for digital assets. These will be provided to Circle and its affiliates. Later, the bank will offer its services to a limited number of institutional clients depending on the market demands.
Potential clients could range from banks to other financial institutions under the regulation. The derivatives trading firms were mentioned as potential customers as well by Circle. Such an expansion was to be limited and conducted under the conditions of the approved operating plan.
Such an organizational form might assist in managing the USDC Reserve operations in the future. It is unknown when such a development might take place. In case it happens, the reserve management will come under federal jurisdiction.
How Circle Expands Its Global Regulatory Reach
This OCC approval is another step in building the regulatory framework around Circle. Circle National Trust joins other approvals that were acquired by the company in large markets. They include New York’s BitLicense in 2015 and compliance with the EU’s MiCA framework in 2024.
It has regulatory authorizations in Singapore, Bermuda, Canada, the United Kingdom, and Abu Dhabi. The company said that federal regulation would increase the standards of governance and compliance. Additionally, the charter would assist its institutional digital assets business.
The approval of this charter is faced with criticisms by some banking institutions. The Bank Policy Institute had intentions to pursue legal actions against the OCC’s charter policy.
This banking institution maintained that crypto trust banks could perform bank functions without the need for the same regulations applied to commercial banks.
Why Banks Question Circle’s Trust Charter
Moreover, other banking organizations were concerned about the issues of consumer protection and financial stability.
Some questions were raised regarding the extent of the legal scope of national trust charters. Such banking organizations required the OCC to modify its policy for crypto trust banks.
Circle has responded to criticisms about the charter and regulatory process. Circle National Trust will be under federal regulation. In addition, Circle said that improved supervision might increase standards of governance and compliance in its digital assets.
Also Read: Circle Faces Legal Challenge Over Alleged Refusal to Help Recover Stolen Crypto
