Circle Seeks U.S. Banking License to Safeguard USDC Reserves, Deepens Push Into Traditional Finance

Circle Internet Group, the issuer of the $61.5 billion USDC stablecoin, has taken a major step toward integrating more tightly with the U.S. financial system. The company has applied for a national banking license, according to a report from Reuters. If approved, the license would allow Circle to serve as a custodian for its own reserves and hold crypto assets on behalf of institutional clients.

The proposed banking entity would operate under the name First National Digital Currency Bank, N.A. and would fall under the regulation of the U.S. Office of the Comptroller of the Currency (OCC). While the license does not permit traditional banking functions such as accepting deposits or issuing loans, it marks a significant shift toward regulatory legitimacy for Circle and the broader stablecoin market.

This move comes on the heels of Circle’s highly successful public debut on June 5 under the ticker symbol CRCL. The IPO was 25 times oversubscribed, priced at $31, and surged 167% on its first trading day—closing at $181.29 and valuing the company at over $40 billion.

Circle has long signaled its intention to bridge the gap between crypto and traditional banking. Although it has previously denied pursuing other types of bank charters, this national license would position the company to eventually offer a broader suite of financial services. Analysts from Bernstein recently suggested that Circle is poised to become the most regulated stablecoin issuer under the upcoming GENIUS Act, giving it a potential lead in a space increasingly defined by government oversight.

With its banking ambitions and a skyrocketing stock price, Circle is clearly betting that regulatory clarity will be key to long-term growth—not just for itself, but for the future of digital dollars.