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Circle shares jump after OCC approval to create national trust bank
Circle National Trust will start with fiduciary digital asset custody for Circle and affiliates, with a later path to limited institutional custody clients.
Circle surged in pre-market trading after the U.S. Office of the Comptroller of the Currency approved Circle to establish a federally supervised national trust bank, according to CoinDesk. The issuer of the USDC stablecoin said the new entity would be called Circle National Trust.
The OCC approval is the final step for Circle’s plan to launch a trust bank authorized to provide custody and fiduciary services, without accepting consumer deposits or making loans. CoinDesk also noted Circle’s shares were up 14% in pre-market trading.
Circle National Trust is expected to begin by offering fiduciary digital asset custody services for Circle and its affiliates once it opens. The approved business plan also leaves room for expansion later to custody services for a limited number of institutional customers, including banks and other regulated financial firms, CoinDesk reported.
CoinDesk said the move reflects a broader push by crypto firms to enter the regulated U.S. banking system, citing that other companies have pursued federal charters, licenses, and banking approvals in recent months.