Circle Lands New York Trust Charter as Stablecoin Issuer Expands Regulatory Footprint
Circle has received a limited purpose trust charter from the New York Department of Financial Services, allowing it to operate as Circle New York Trust under state supervision. The approval adds to Circle’s existing New York BitLicense and gives the USDC issuer another regulatory foothold as it expands. The charter lets Circle provide trust-style digital asset services, such as holding assets for customers, but not accept deposits or make loans like a bank. CEO Jeremy Allaire said the charter is a major milestone and reflects the company’s long regulatory focus. Circle’s stock rose 8.4% after the announcement. The approval follows two recent moves: OCC approval to form a national trust bank and the acquisition of IBM’s blockchain patent portfolio.
