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- Zameer Attar
Zameer Attar
- Reviewed by:
Anjali BelgaumkarWriter by choice, CryptoCurrency Writer, and Researcher by chance. Currently, focusing on financial news and analysis, as well as cryptocurrency news and data. One may not call me a crypto “Enthusiast” but trust me I'm getting there.
- Jul 16, 2025 06:54 UTC
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Circle Applies to OCC: Reinforcing Control in USDC Reserves
Circle applied to OCC to offer digital asset custody services and abolish third-party reliance on its USDC reserves.
Circle currently holds over $62 billion in USDC circulation, making itself one of the major global contenders.
The stablecoin issuer, Circle Internet Group, applied to the Office of the Comptroller of the Currency (OCC) on June 30 to establish a US trust bank called First National Digital Currency Bank. If OCC approves, the trust bank would oversee the company’s reserves of USDC (its dollar-pegged stablecoin) and offer digital asset custody services to institutional clients.
Why Did Circle Apply for National Digital Currency Bank
Currently, the BlacRock manages the majority of Circle’s stablecoin reserves, which is not ideal for the company. It makes the stablecoin users susceptible to risks without warranting their safety. Without a strong, trustworthy structure, the company would become vulnerable and would be exposed to legal uncertainties.
Additionally, this will result in token collapse and scaling back the adoption rate. So, the company is applying to the National Trust Bank to strengthen its USDC infrastructure.
Circle’s Key Objectives with National Digital Currency Bank
- The National Trust Bank will be managing USDC reserves and tokenized treasuries in Circle while offering on-chain payments under federal oversight. This initiative aims to help Circle meet the requirements in the GENIUS Act.
- One of Circle’s primary goals is to build an internet financial system that is transparent, efficient, and accessible to all users, ensuring legal compliance.
- Circle plans to focus on the custody of tokenized assets — stocks and bonds on blockchain rails, rather than cryptocurrencies like Bitcoin. Amid the global trends of modernizing traditional markets by integrating blockchain technology, Circle is fortifying its blockchain priority to meet the global demand.
Has the OCC Application Been Approved?
The OCC has not yet approved Circle’s application for a national trust bank charter. The process of reviewing the application includes a public comment period of 30 days before finalizing.
Generally, the complete process takes 120 days, examining the necessary documentation, business summary, compliance, requirements of global standards, and outline of the services it aspires to provide.
Final Thought
With over $62 billion in USDC circulation, Circle is thriving in the global competition of digital assets. The company is actively working to terminate its reliance on a third party to oversee its digital asset reserves while strengthening internal control by minimizing risks and enhancing transparency.
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FAQs
Circle applied to establish First National Digital Currency Bank to directly oversee its USDC reserves, reduce reliance on third-party custodians like BlackRock, and strengthen its infrastructure. This move aims to enhance safety, transparency, and legal compliance for stablecoin users.
Circle’s primary goals are to build a transparent, efficient, and accessible internet financial system that is legally compliant. This initiative aims to help Circle meet requirements in the proposed GENIUS Act and fortify its blockchain priority for traditional markets.
Circle currently has over $62 billion in USDC circulation. The application signifies Circle’s move to terminate reliance on third-party oversight of its digital asset reserves, strengthening internal control by minimizing risks and enhancing transparency in the global digital asset competition.
Yes 
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