Circle Aims to Establish First National Digital Currency Bank
Circle, a stablecoin firm, is seeking to create a national trust bank in the U.S. This move follows its IPO at a nearly $18 billion valuation. If approved, Circle's bank could hold crypto assets for clients but not take deposits or make loans, expanding its digital asset custody services.

Circle, known for its dollar-pegged stablecoin USDC, is taking a pivotal step towards establishing a national trust bank in the U.S., following a striking IPO that valued the company at $18 billion. This strategic move is seen as a gateway for the firm to enhance its trust and transparency in the financial sector.
The proposed national trust bank, named First National Digital Currency Bank, N.A., would allow Circle to hold cryptocurrency assets on behalf of its clients. This development, contingent upon approval from the U.S. Office of the Comptroller of the Currency, distinguishes itself by focusing on custodial services rather than functioning like a traditional banking institution.
Circle's expansion into mainstream financial markets coincides with legislative developments aimed at creating a federal regulatory framework for stablecoins. The bill, expected to become law, mandates stablecoin issuers to back tokens with liquid assets, paving the way for broader integration into traditional financial systems.
(With inputs from agencies.)
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