Circle shares surge 13% on getting regulatory approval to set up US trust bank

Stablecoin issuer Circle's shares rose 13% in early trading after it said on Friday it has received final regulatory approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank.

The approval allows the company 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 charter places its national trust bank under the direct federal supervision of the OCC, the primary regulator for national banks and trust institutions, according to a Reuters report.

The approval comes as digital asset companies increasingly expand into traditional financial services, seeking banking licences, custody operations and payment capabilities amid a more supportive regulatory environment.

Circle is the issuer of USDC, a stablecoin pegged 1:1 to the U.S. dollar. Stablecoins are cryptocurrencies designed to maintain a fixed value and are widely used for transferring funds across the crypto ecosystem.

USDC currently has a market capitalisation of about $73.2 billion, according to CoinGecko.

Circle shares have declined 20.5% so far this year through the previous close, giving the company a market capitalisation of around $15.7 billion, according to LSEG data.