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Circle, the company behind the USDC stablecoin and fresh off a blockbuster IPO, is reportedly taking its next big step, applying for a U.S. national banking license.
According to Reuters, the move could bring Circle even deeper into the heart of the traditional finance world, with a specific focus on custody and compliance.
However, don’t expect Circle to start handing out loans or accepting cash deposits just yet, this isn’t your typical banking license.
A custody-first banking approach
If approved, the license from the U.S. Office of the Comptroller of the Currency (OCC) would allow Circle to create an OCC-regulated entity dubbed First National Digital Currency Bank, N.A.
This bank wouldn’t function like your local branch with checking accounts and mortgage offers.
Instead, it would give Circle permission to custody its USDC reserves directly and hold crypto on behalf of institutional clients.
That means Circle could eliminate reliance on third-party custodians and exercise more direct control over its stablecoin infrastructure.
This push into banking aligns with Circle’s long-term vision.
The company has previously expressed interest in securing a full-fledged banking charter, and this new application seems to be a major step in that direction.
However, it's worth noting that Circle has publicly denied past speculation about seeking other types of bank licenses, such as a national trust charter or industrial bank designation.
Building a regulated future for stablecoins
Circle’s banking ambitions come on the heels of its public market debut earlier last month under the ticker CRCL. The IPO turned heads, with shares soaring over 150% on day one after a heavily oversubscribed offering.
As momentum builds, analysts, including those at Bernstein, see Circle gaining a regulatory edge through initiatives like the recently passed GENIUS Act, which could give USDC a favorable position as the most regulated stablecoin on the market.
If Circle gets the green light from regulators, the move could be a foundational shift in how stablecoins operate within traditional financial systems.
It also signals a broader trend of crypto-native firms embracing regulated frameworks to appeal to institutions and mainstream finance.
Overall, let’s just say Circle isn’t just playing the game anymore; it’s trying to change the rules.
