USDC stablecoin issuer Circle has received final approval from the US Office of the Comptroller of the Currency (OCC) to establish First National Digital Currency Bank (FNDCB), a national trust bank that will operate under the name Circle National Trust. The OCC’s decision marks a significant step toward bringing Circle’s custody and trust-related services into a federally regulated banking structure.

Circle said the approval, announced Friday, follows its application for the national trust bank charter in June 2025. Circle CEO Jeremy Allaire called it “a defining step in bringing blockchain technology and digital assets into the core of the US financial system,” according to the company’s press release: https://www.circle.com/pressroom/circle-receives-final-occ-approval-to-establish-national-trust-bank.

Key takeaways

• Circle received final OCC approval to create Circle National Trust, a national trust bank.
• The bank’s initial mandate focuses on fiduciary digital asset custody for Circle and affiliated companies.
• Circle National Trust may later extend services to a limited set of institutional customers if demand grows.
• The structure could, in future, support management of the USDC Reserve under federal oversight, depending on implementation.

From charter application to OCC final approval

Circle’s new bank is the culmination of a charter process that began when the company applied for the national trust bank charter in June 2025, according to Circle’s earlier filing and subsequent updates. In Friday’s announcement, Circle framed the OCC approval as an important regulatory milestone for its broader effort to embed USDC infrastructure within mainstream financial oversight.

While the approval itself is a clear authorization step, the scope of what Circle National Trust can do—at least at launch—remains tightly defined by the bank’s approved business plan. That distinction matters for investors and counterparties because the earliest stage will likely concentrate on internal and affiliate custody needs before widening to external clients.

What Circle National Trust will do at launch

According to Circle’s approved business plan, Circle National Trust will initially offer fiduciary digital asset custody services for Circle and its affiliated companies. This “start limited” approach is common when new regulated entities begin operations, especially when they involve specialized services like digital asset custody.

Circle also indicated it could later expand services to a limited group of institutional customers. That potential expansion includes banks and other financial institutions, such as regulated derivatives firms, if demand develops. In other words, the bank is not positioned as a broad retail custodian from day one; rather, it appears designed to support institutional workflows connected to regulated capital markets.

The structure additionally creates a pathway—if implemented—to manage the USDC Reserve within a trust bank framework, bringing those operations under federal oversight. Circle did not provide further implementation details in the announcement, but the possibility is a key point because USDC’s reserve management is central to stablecoin credibility and operational risk controls.

Circle’s expanding regulatory footprint

Circle’s OCC approval adds another layer to a regulatory build-out that has already included multiple jurisdictions. The company said it was the first firm to receive a BitLicense from the New York Department of Financial Services in 2015. It also stated it became the first global stablecoin issuer to comply with the European Union’s MiCA (Markets in Crypto-Assets) framework in 2024, aligning its operations with a more comprehensive EU stablecoin regime.

Circle has also pointed to approvals in other markets, including the United Kingdom, Singapore, Bermuda, Canada, and Abu Dhabi, as it continues to scale its USDC infrastructure globally.

For market participants, this multi-region regulatory record is relevant because it suggests Circle is pursuing a “compliance-first” model across major financial jurisdictions. The US trust bank approval, in that context, is a move from sector-specific and cross-border oversight toward a deeper integration with US banking supervision.

The company previously worked on expanding how USDC can be minted and used through traditional banking channels; Cointelegraph reported on Standard Chartered and Circle bringing USDC minting onto banking rails, reflecting an ongoing effort to connect stablecoin issuance and distribution to regulated financial infrastructure.

Why the timing and structure could matter for USDC

USDC’s role in crypto markets depends not only on its liquidity, but also on how its infrastructure is supervised and operationalized. A federally regulated trust bank structure can potentially strengthen institutional confidence by formalizing custody-related functions within a banking oversight framework.

At the same time, it’s important to separate the approval from the eventual operational outcomes. Circle National Trust’s initial custody scope is limited to Circle and affiliated companies, and any future handling of the USDC Reserve would depend on later implementation. That means the most immediate impact may be internal—while the broader institutional-facing effects could arrive later if Circle expands its customer base as indicated.

Markets react as Circle shares move higher

Circle Internet Group’s stock (CRCL) rose roughly 16% in pre-market trading on Friday after the announcement, according to Yahoo Finance data, climbing above $73 after closing the previous session at $63: https://finance.yahoo.com/quote/CRCL/.

Stablecoin demand and overall crypto market activity remain key drivers for USDC, and the token’s scale provides additional context. At the time of publication, USDC was described as the second-largest stablecoin by market capitalization at $73.3 billion, according to CoinGecko. CoinGecko data cited in the source indicated its market cap increased 16.7% over the past year, while declining 2.5% year-to-date (as reported in the original article).

Investors and institutional users will likely watch two things next: whether Circle National Trust expands its custody services beyond affiliated entities, and whether Circle moves forward with any plan to bring USDC Reserve management under the bank’s federally supervised structure. Both developments could shape how quickly USDC infrastructure deepens its integration with traditional financial systems.

A bipartisan housing bill containing a ban on a central bank digital currency (CBDC) in the United States is set to become law as the deadline approaches for President Donald Trump to sign it.

Just after midnight on Friday, the 21st Century ROAD to Housing Act will have been in Trump’s hands for 10 days, excluding Sundays, the maximum amount of time a bill can be on the president’s desk without a veto or a signature. Under the US Constitution, the legislation will automatically become law without action from Trump, who canceled the signing ceremony for the bill on Jun 24.

In a Friday social media post, Trump confirmed that he would not sign the housing bill, calling Republicans in Congress who voted on the legislation “dumb” and urging the Senate to instead prioritize a controversial voting bill, the SAVE America Act. The legislation, which would require people to provide proof of US citizenship in person to register, has received widespread criticism for claims that it would disenfranchise citizens already eligible to vote.

Source: Donald Trump

The housing bill, passed by the House of Representatives and Senate in June with support from Democrats and Republicans, included language barring the Federal Reserve from issuing or creating a CBDC “or any digital asset that is substantially similar” until Dec. 31, 2030. Many analysts saw the digital dollar ban as a political giveaway to gain Republican support. Trump did not address the CBDC ban in his Friday post.

Related: Trump backs CFTC authority over prediction markets

“[H]e’s refusing to sign the biggest housing bill in 30 years,” said Senator Elizabeth Warren, who co-sponsored the bill, on Trump’s actions. “The good news: it’s going to become law anyway.”

Could Trump’s inaction also affect crypto market structure?

Although the US president said in May that he intended to “future-proof” digital asset regulations, his refusal to sign legislation unrelated to the SAVE America Act has raised questions about whether the Digital Asset Market Clarity (CLARITY) Act under consideration in the Senate could face a similar situation as the housing bill.

The CLARITY Act, considered by many to be one of the most significant pieces of legislation affecting digital asset regulation, has already passed the House and two crucial Senate committees. Republican leaders in Congress expect that the bill will be heading to the full chamber for a floor vote in July once lawmakers return from state work periods on Monday.

Trump’s ties to the crypto industry have already complicated discussions between Democrats and Republicans over the market structure bill. The president disclosed earning more than $1.4 billion in income from his crypto ventures in 2025, including memecoins and the family’s World Liberty Financial platform.

Magazine: Crypto’s CLARITY Act faces partisan fight over ethics on Senate floor

Five Democratic senators have called for committee hearings “to investigate the national security implications of President Trump’s cryptocurrency holdings” as the chamber considers digital asset market structure legislation.

In a Friday notice, the Democratic ranking members of five US Senate committees and subcommittees asked lawmakers to address President Donald Trump’s 2025 financial disclosure, in which he reported earning about $1.4 billion connected to crypto ventures like his memecoin and family’s World Liberty Financial platform. The lawmakers said that the reports “heighten concerns about the President pushing Congress to pass crypto legislation in favor of the very industry he’s cashing in on,” referring to the Digital Asset Market Clarity (CLARITY) Act, on which the Senate is expected to vote this month.

“We call on our respective Committees to hold hearings to investigate the national security implications of President Trump’s cryptocurrency holdings, including the influence of the [United Arab Emirates] or unknown third parties on President Trump’s actions,” said the notice.

Senator Richard Blumenthal, one of the Democrats who called for hearings into Trump’s ties to crypto, speaks to CNN’s Anderson Cooper on Thursday. Source: Richard Blumenthal

As members of the minority in both the Senate and House of Representatives, Democrats have less authority to hold their own hearings and oversight without Republican support. However, Senate rules require 60 votes to end a filibuster and advance a bill, meaning that Republicans will need help from some Democrats to pass CLARITY.

Related: Donald Trump says ‘nothing wrong’ with $1.4B crypto windfall while in office

Some Senate Republicans, like Cynthia Lummis, continue to push for CLARITY to pass even as many Democrats signal they will withhold support without clear ethics provisions. Representative French Hill, who chairs the House Financial Services Committee and helped the bill pass in the House in 2025, said that Trump’s ties made passing legislation “more complicated.”

CBDC ban to become law after Trump’s refusal to sign bill

The notice from Democrats came just hours before a bill barring the Federal Reserve from issuing or creating a central bank digital currency (CBDC) until Dec. 31, 2030, is expected to become law on Saturday. Trump canceled the signing ceremony for the bipartisan housing bill containing the CBDC ban and did not issue a veto of the legislation, leaving the measure to automatically become law after 10 days.

Magazine: Crypto’s CLARITY Act faces partisan fight over ethics on Senate floor

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

In this video, we’ll explore the key economic events and market trends, shaping the financial landscape. Get ready for insights into financial markets to help you navigate the week ahead. Let’s dive in!

In this episode of Market Insights, Gary Thomson unpacks the strategic implications of the most critical events driving global markets.

👉 Key topics covered in this episode:

✔️ US Inflation Rate — 14 July, 3:30 PM GMT+3
Investors are closely watching the latest US inflation report, as it could influence expectations for the Federal Reserve’s next policy decisions. A stronger-than-expected reading may revive expectations of tighter monetary policy and support the US dollar, while softer data could reinforce expectations that rates will remain unchanged for longer.

✔️  Fed Chair Warsh Testimony — 14–15 July
Market attention is turning to Fed Chair Kevin Warsh’s first congressional testimony, where investors will look for fresh signals on interest rates, inflation and the economic outlook. Any shift in tone or unexpected comments could drive volatility across currencies, gold and US equities.

✔️ UK GDP Data — 16 July, 9:00 AM GMT+3
The latest UK GDP figures will provide insight into the strength of the British economy and could affect expectations for future Bank of England policy. With sterling already under pressure against the US dollar, any surprise in economic growth data may trigger increased volatility across GBP pairs.

✔️ US Earnings Season
The start of the US earnings season will offer an early look at corporate performance, with major banks reporting results. Investor focus will be on credit demand, consumer activity and the overall health of the US economy, with financial sector results potentially setting the tone for broader equity markets.

Geopolitical risks, especially around US-Iran tensions and energy markets, could remain an important driver of volatility across currencies, commodities and equities.

In this environment, traders closely monitor incoming data, being flexible and getting ready for short-term volatility.

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The CBDC limit expires at the end of 2030, though there was little chance that a Fed digital currency would have been executed by then. There’s been limited appetite at the central bank, where its previous leadership — even before the arrival of Trump’s newest Fed chair, Kevin Warsh — had long said that such an effort would require backing from the White House and congressional authorization. There’s never been wide support for a CBDC in Congress.

But the idea — strongly opposed by the crypto industry for its potential to compete with privately issued stablecoins — has been pursued in other jurisdictions, such as Europe and China, and it became a popular political target for U.S. politicians. So Republicans managed to slip it into the unrelated housing legislation, after previously trying to include it in a range of bills including the Foreign Intelligence Surveillance Act.

Despite the overall housing bill’s popularity, Trump took an unexpected, last-minute stand against signing it, for which he’d previously scheduled a ceremony and had a stage erected. He declared that he wouldn’t sign anything until lawmakers approved a bill that would impose new proof-of-citizenship and identity checks on voters — an effort without sufficient current support to pass in Congress.