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Circle wins final OCC approval to open a federal trust bank for USDC
The Office of the Comptroller of the Currency approval comes as Standard Chartered warned stablecoins could drain about $500 billion from US bank deposits by end-2028.
Circle said it received final approval from the Office of the Comptroller of the Currency on July 10 to open a national trust bank under federal supervision, a move it framed as a step forward for USDC.
The structure is designed around fiduciary digital asset custody for Circle and its affiliates, while reserve management is listed as a future capability, and the OCC’s conditional approval emphasized the trust bank remains separate from stablecoin issuance.
While Circle highlighted the clearer regulatory frame for banks, payment firms, asset managers, and corporate treasury desks to build around USDC, the approval also sharpened banks’ concerns about stablecoins competing with deposit-taking models, CryptoSlate reported.
The story cites Standard Chartered’s view that stablecoins could pull roughly $500 billion from US bank deposits by the end of 2028, and a Federal Reserve note that projected stablecoin adoption could reduce lending by between $65 billion and $1.26 trillion depending on adoption levels and where issuers hold reserves.