Circle applies to establish a national trust bank in the U.S

ChainCatcher news, according to CNBC, stablecoin issuer Circle (CRCL.K) is applying to establish a national trust bank in the United States. Earlier this month, the company achieved a valuation of nearly $18 billion through its initial public offering, and this application is a key move following that.

If the Office of the Comptroller of the Currency (OCC) approves this charter, Circle will be able to act as a custodian for its own reserves and hold crypto assets on behalf of institutional clients. However, unlike traditional banks, this charter does not allow Circle to accept cash deposits or issue loans. Currently, the only digital asset company with a national trust bank charter is the cryptocurrency platform Anchorage Digital.

Experts and analysts say that once the bill is signed into law, it could pave the way for more traditional financial institutions and retailers to incorporate stablecoins into their businesses.