Circle's Subsidiary Lands New York Trust Charter for Fiduciary Services

Circle Internet Trust Company LLC, a subsidiary of Circle, has received a limited purpose trust charter from the New York Department of Financial Services (NYDFS). This charter allows Circle's subsidiary to exercise fiduciary powers and conduct activities such as custodial services, investment management, corporate trust, transfer agency, and securities clearance. Unlike traditional banks, institutions with this type of charter do not have the power to accept deposits or make loans.

The NYDFS issued a limited purpose trust charter under New York Banking Law, which also notes that some applicants seek to engage in virtual currency-related activities. Circle's CEO Jeremy Allaire stated that earning a New York trust charter has been a 'longstanding objective' for the company due to the regulatory clarity it provides.

Circle was previously granted a BitLicense by NYDFS in 2015, allowing it to conduct virtual currency business in New York. The company issues the USDC stablecoin, which has a market capitalization of $71.8 billion, making it the second-largest stablecoin behind Tether USDt (USDT) and the fifth-largest cryptocurrency.