Circle Internet Group, the company behind USDC, secured a limited purpose trust charter from the New York Department of Financial Services. This move grants Circle permission to offer fiduciary, custody, and asset management services under New York banking law, marking a major step in the company’s regulatory journey.
Jeremy Allaire, Circle’s co-founder and CEO, highlighted that obtaining this charter was a long-term goal aimed at enhancing regulatory clarity. With USDC’s market cap surpassing $71.8 billion, this authorization strengthens Circle’s position in the stablecoin arena.
Earlier this month, Circle also received approval from the U.S. Office of the Comptroller of the Currency to establish a national trust bank. Unlike traditional banks, this institution will not accept consumer deposits or issue loans but will provide custody and fiduciary services to institutional clients. Circle says this will boost the security and regulatory oversight of the USDC reserves and pave the way for expanded digital asset custody offerings.
Several crypto firms, including Coinbase and Paxos, have already obtained similar trust charters from NYDFS, with Circle being the first to receive a BitLicense six years ago. Despite these regulatory advances, Circle’s stock price held steady at $64.24 following the announcement.
