Circle Secures NY Trust Charter for USDC Stablecoin, Matching Ripple's Compliance Edge
Circle's New York Trust Charter for USDC Stablecoin Challenges Ripple's Compliance Edge
New York authorities have granted Circle a limited-purpose trust charter, which is set to benefit the issuer of the USDC stablecoin. This decision matches Ripple's similar approval from the NYDFS for its RLUSD stablecoin back in December 2024.
Jeremy Allaire, Circle's CEO, stated that 'the race-to-the-top regulatory strategy continues.' The trust charter will allow Circle to hold multibillion-dollar reserves backing USDC under direct supervision of New York financial regulators, eliminating the need for third-party commercial banks. This move is expected to strengthen USDC's regulatory foundation.
The new state charter will operate alongside the federal national trust charter previously conditionally approved by the OCC. According to Allaire, the company is building 'fundamental financial market infrastructure under supervision that spans the globe.' The CEO emphasized that digital dollars are playing an increasingly important role in the global financial system and that USDC has been firmly integrated into a recognized legal framework.
Notably, shares of Circle Internet Group (CRCL) dropped to $60.78 on July 31 despite this significant regulatory development.