Circle Receives Approval to Launch Crypto-Focused Bank — Update

By Connor HartCircle Internet Group shares popped after the company received approval from the U.S. Office of the Comptroller of the Currency to establish a national trust bank, a regulatory milestone that sets up the launch of a cryptocurrency-focused bank.The bank, which will operate under the name Circle National Trust, said the approval will strengthen the infrastructure of USDC, a stablecoin, or cryptocurrency intended to maintain a fixed value against the dollar.Shares rose 13%, to $71.21, in premarket trading Friday. Through Thursday's close, the stock has lost about a quarter of its value year to date.As a federally regulated national trust bank, Circle said it will align digital asset infrastructure with the longstanding role of banks in safeguarding client assets under strict fiduciary standards.Circle National Trust will offer digital asset custody services for the company and its affiliates and, depending on demand, may eventually offer services to a limited number of institutional customers directly, focusing on banks and other financial institutions."Federal oversight of our trust bank sets a new standard for transparency, governance and scale for Circle's infrastructure and unlocks a new phase of adoption, where leading financial institutions can build on public blockchains with clarity and confidence," Chief Executive Jeremy Allaire said.The approval comes after Circle first submitted its application to the OCC last summer. The company received a conditional approval in December, when the Trump administration agreed to plans to launch five new cryptocurrency-focused national banks.Write to Connor Hart at [email protected]