Circle Secures OCC Approval for Specialized Bank

The Office of the Comptroller of the Currency (OCC) granted Circle final approval to establish Circle National Trust, a specialized bank, on July 10. The trust bank opened its doors on July 24 and will hold things carefully while answering to a federal regulator.

Circle's FAQ explains that no deposits or lending will be done at this bank, making it the financial equivalent of a safe-deposit vault. Initially, the bank is expected to operate primarily as a sub-custodian for Circle affiliates, but outside institutions may gain access later depending on demand.

Circle CFO Jeremy Fox-Geen said USDC's underlying operations might move to Circle National Trust someday, but they have not changed yet. The company still earns its keep by collecting interest on the dollars and Treasuries backing USDC.