Stablecoin Issuer Circle Gains Bank Status, Stock Surges 12%
The approval lets Circle manage USDC reserves under federal oversight and sent shares up more than 12% in early trading, the company said.
- On Friday, Circle received approval from the U.S. Office of the Comptroller of the Currency to establish Circle National Trust, placing the company's USDC infrastructure under direct federal oversight.
- Previously, Circle relied on third-party custodians to hold Treasury assets backing USDC, but the new charter enables direct management of reserves for the stablecoin, which has more than $73 billion in circulation.
- Shares of Circle gained more than 14% following the news, while Coinbase, a major distributor of USDC, stands to benefit from the broader institutional adoption of regulated stablecoins.
- Circle National Trust will offer fiduciary digital asset custody services, though the charter does not greenlight the company to operate as a commercial bank that takes deposits or issues loans.
- This federal banking charter signals a more legitimized digital asset landscape, reflecting a regulatory shift in Washington that began nearly a year ago with the GENIUS Act.
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39 Articles
Circle’s Stock Tanked 19% on OUSD's Announcement. How Justified Was the Reaction?
The stablecoin world has a new entrant and its announcement has had at least some Circle investors shaking in their britches. Circle’s stock fell nearly 19% last week as new stablecoin company Open Standard announced plans to launch Open USD, or OUSD, a stablecoin backed by nearly every finance giant you can think of, from BlackRock to Western Union. It didn’t help that a report of Circle being delisted from several Russell growth indexes broke…
Circle Wins U.S. Trust Bank Approval As Stablecoin Competition Intensifies. Shares Jump After OCC Green Light.
The move comes as crypto firms and traditional financial institutions compete to build regulated stablecoin infrastructure following clearer U.S. rules for digital assets.
Circle Jumps 14% on OCC Trust Bank Approval; Coinbase and Strategy Gain 5% as Bitcoin Bounces
A federal banking charter sent Circle stock surging Friday, but with 69% losses over the past year and a rival stablecoin backed by Visa looming, the question is whether this rally marks a turning point or just a dead-cat bounce.
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