Breakthrough in Crypto! Circle Secures U.S. Banking Charter, Shares Surge Over 12% Pre-Market

Stablecoin issuer Circle Internet Group announced on Friday (the 10th) that it has received approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish Circle National Trust, a national digital currency trust bank. This enables the company to directly manage reserves for its regulated stablecoins and provide institutional asset custody and transaction settlement services. The news sent Circle's stock surging over 11% pre-market, with gains exceeding 12% during early trading.

At the time of reporting, Circle (CRCL-US) shares were up 12.84% pre-market, trading at $71.10 per share.

Circle is the issuer of USDC, the world's second-largest U.S. dollar-pegged stablecoin, with over $73 billion in circulation. With the banking charter, Circle can now directly manage cash and U.S. Treasury securities backing USDC, reducing reliance on third-party banks and custodians, thereby strengthening control over its stablecoin financial infrastructure.

However, Circle National Trust is a national trust bank, not a traditional commercial bank, meaning it cannot accept retail deposits or issue loans. Its primary activities include asset custody and transaction settlement.

This charter shifts Circle from navigating varying state-level regulations to operating under a single federal regulatory framework supervised by the OCC, potentially lowering compliance costs and removing barriers to expansion. Jeremy Allaire, Circle's co-founder and CEO, stated that the OCC's approval marks a critical step in integrating blockchain technology and digital assets into the core of the U.S. financial system.

Circle's approval reflects a broader shift in the cryptocurrency industry from merely offering financial applications to owning financial infrastructure. Firms like Coinbase, BitGo, Fidelity Digital Assets, Ripple, and Paxos have also recently sought or obtained OCC approvals, signaling an accelerating race for regulated financial services.

With the U.S. government passing the GENIUS Act last year, establishing the first federal regulatory framework for payment stablecoins, competition in the stablecoin market is intensifying. More traditional financial institutions are seeking to launch their own stablecoins to capture payment flows, deepen customer relationships, and build programmable financial services on digital dollars, increasing competitive pressure on USDC.

Global stablecoin market capitalization has now surpassed $310 billion. Morningstar recently projected that driven by cross-border payments and remittances, global stablecoin circulation could reach $1.45 trillion by 2035. Circle's OCC banking charter strengthens its positioning as a regulated digital financial infrastructure provider and enhances its appeal to institutional clients.