Circle to launch crypto custodian for institutions in the US

Last month, the company went public through an IPO under the ticker CRCL

Circle has applied to launch a trust to hold crypto assets in the US

01.07.2025 - 16:20

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4 min

What’s new? Circle, a company that issues the USDC stablecoin with a capitalization of $61,6 billion, has applied to launch a national trust bank in the United States. Last month, the company went public on the New York Stock Exchange (NYSE) through an initial public offering (IPO) under the ticker CRCL and reached a valuation of $18 billion.

Material by Reuters

What else is known? If the company manages to obtain a license from the Office of the Comptroller of the Currency (OCC), it will be able to act as a custodian of USDC reserves on its own, as well as hold crypto assets of institutional clients.

Circle’s reserves are represented by short-dated US Treasury bills, overnight US Treasury repurchase agreements, and cash held at BNY Bank and managed by BlackRock, the world’s largest investment firm.

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The new organization will manage USDC’s reserves, although some reserves will still be held at large banks, Circle CEO Jeremy Allaire said.

In terms of servicing institutional clients, the company will focus on holding tokenized stocks and bonds represented in the form of digital tokens on the blockchain, rather than conventional cryptocurrencies such as BTC and ETH.

The license will not allow Circle to accept cash deposits or issue loans, unlike traditional banks.

If all goes well, the new company will open under the name First National Digital Currency Bank.

Currently, the only US crypto firm with this form of organization is custodian Anchorage Digital.

US Treasury chief: Trump’s support for stablecoins will reinforce dollar dominance

A day earlier, the Senate passed legislation to regulate stablecoins called GENIUS

Congress is now moving closer to passing a bill to create a federal regulatory framework for stablecoins. It calls for tokens to be backed by liquid assets and for issuers to disclose the composition of their reserves monthly.

The Senate passed the bill early last month, and it now heads to the House of Representatives for a vote. President Trump has previously said he intends to sign similar legislation as soon as possible.

Once signed, the bill could make it easier for traditional financial institutions and retailers to incorporate stablecoins into their businesses. Allaire noted that Circle is preparing for such a development.

Earlier, some analysts expressed concern about Circle’s inflated valuation, given that the stock has more than doubled since it went public. Brokers Barclays, Bernstein, Canaccord Genuity, and Needham forecast them to rise above $200, while banks JPMorgan and Goldman Sachs have provided more bearish predictions.