Circle Secures Limited Purpose Trust Charter from Strict NYDFS

Circle, the firm behind the USDC stablecoin, has been granted a limited purpose trust charter by the New York Department of Financial Services (NYDFS). This approval is significant as it represents an operational green light from one of the strictest state-level regulators in the country. The NYDFS is known for maintaining high standards and has added extra reserve cap requirements for custodians in recent proposed rules.

Circle's trust charter certification is not its first license from NYDFS, having previously received the BitLicense in 2015. Jeremy Allaire, Circle's co-founder, chairman, and CEO, commented on the approval, stating 'This charter reflects over a decade of regulatory commitment and positions USDC within a strong, respected framework as digital dollars become central to the global financial system.'

The NYDFS has been working to synchronize its rules with federal provisions, such as the GENIUS Act signed by President Trump in 2025. The act allows issuers that don't meet a $10 billion minimum outstanding supply benchmark to operate under state-level authorization, as long as the state's rules are substantially similar to federal provision.