Circle Applies to Establish a National Digital Currency Bank in the U.S.

Leading stablecoin issuer Circle (CRCL) revealed on June 30 that it has submitted an application to the Office of the Comptroller of the Currency (OCC) to establish the 'First National Digital Currency Bank'.

If the banking license is approved, Circle will be able to self-manage its USDC stablecoin reserves (U.S. cash and Treasury bonds) and offer cryptocurrency custody services to institutional investors. Unlike traditional banks, this operation will not include deposit acceptance or lending services.

CEO Jeremy Allaire stated, 'We have pursued the highest standards of trust and transparency,' and described this move as part of the company's efforts to strengthen corporate governance following its IPO. Currently, USDC's reserves are managed by BNY...