Circle can now open a US trust bank but cannot take ordinary deposits or make loans
Circle received final OCC approval on July 10 to form a national trust bank, but the charter is narrow and does not make it a conventional commercial bank. The new entity cannot take ordinary deposits, make loans, offer checking or savings accounts, or provide FDIC-insured retail banking. Its initial approved role is fiduciary custody of digital assets for Circle and its affiliates under OCC supervision. Circle said the legal name will be First National Digital Currency Bank, N.A., operating as Circle National Trust. It may later offer custody to a limited set of institutions, mainly banks and other regulated firms, and reserve management for USDC could be added in the future, but no launch date or timeline has been disclosed. The main strategic value is greater control over infrastructure supporting USDC, which has a market cap around $73.3 billion, by bringing custody and possibly reserve management under one federal framework. The charter may help with trust from regulated institutions, but it does not automatically expand USDC liquidity or distribution. Critics argue such charters can give fintechs bank-like benefits without full bank regulation.
