Circle wins final regulatory approval to establish US tru…

Circle Internet Group has received final regulatory approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank, prompting a 10% surge in its shares. This establishes Circle as a custodian for its reserves and allows it to hold crypto assets for institutional clients. Circle's CEO, Jeremy Allaire, emphasized the significance of this approval in integrating blockchain technology into the U.S. financial system. The bank will operate under direct federal oversight, enhancing Circle's credibility in the traditional finance sphere. Circle issues the USDC stablecoin, which has a market value of approximately $73.2 billion, maintaining a prominent role in cryptocurrency transactions. However, Circle's shares have declined 20.5% this year, with a market capitalization of around $15.7 billion.

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A screen shows the logo of Circle, the issuer of one of the world's biggest stablecoins, on the day of the company's IPO at the New York Stock Exchange (NYSE), in New York City, U.S., June 5,... Purchase Licensing Rights, opens new tabRead more

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July 10 (Reuters) - Circle (CRCL.N), opens new tab said on Friday it has received a final regulatory approval from the U.S. Office of the Comptroller of the Currency to establish a ‌national trust bank, sending the stablecoin giant's shares surging 10% in premarket trading.

Here are some details:

The charter allows Circle to act as custodian for its own reserves and hold crypto assets on behalf of institutional ⁠clients.
"OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the U.S. financial system," Circle CEO Jeremy Allaire said in a statement.
Circle said the approval places its trust bank under direct federal oversight by the OCC, the primary regulator for lenders and national trust banks.
As ‌regulatory ⁠hurdles eased, digital asset firms have expanded into traditional finance, pursuing banking licenses, custody businesses and payment services over the past year.
Circle issues USDC, a dollar-pegged stablecoin. Stablecoins are cryptocurrencies ⁠designed to maintain a fixed value, usually through a 1:1 peg to the U.S. dollar, and are widely used to transfer funds ⁠between crypto tokens.
USDC has a market value of about $73.2 billion, according to CoinGecko.
Circle shares have fallen 20.5% so ⁠far this year, through last close, giving it a market capitalization of about $15.7 billion, according to LSEG data.

Reporting by Manya Saini in Bengaluru; Editing by Shilpi Majumdar

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Circle wins final regulatory approval to establish US trust bank, shares rise

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