Circle Secures New York Trust Charter for USDC Expansion

Circle, the company behind the USDC stablecoin, has secured a limited-purpose trust charter from the New York Department of Financial Services (NYDFS). This development is significant for Circle as it marks another regulatory approval in its expansion efforts. The charter allows Circle to operate a New York trust company that can provide digital asset custody but does not permit it to accept deposits or make loans like a traditional bank.

The NYDFS has placed Circle New York Trust under its supervision, and the company will now be able to offer services such as holding digital assets on behalf of customers and acting in a fiduciary role under New York banking law. This approval is seen as an important milestone for Circle, with CEO Jeremy Allaire stating that it reflects over a decade of regulatory commitment.

The charter builds on the BitLicense received by Circle in 2015, and its acquisition of IBM's blockchain patent portfolio earlier this month further strengthens its position. The company plans to use the portfolio across USDC, the Circle Payments Network, and its Arc blockchain. Following the announcement, shares of Circle rose 8.4% on the day at around $68.40.