CumberlandThe approval lets the USDC issuer offer fiduciary and custody services under New York banking law.
Circle secures New York trust charter as crypto regulatory push accelerates
The approval lets the USDC issuer offer fiduciary and custody services under New York banking law.
Circle Internet Group, Inc. (CRCL), the issuer of USDC, the world’s second-largest stablecoin, announced Friday that it secured a limited purpose trust charter from the New York Department of Financial Services (NYDFS).
The trust charter is an official state banking authorization that allows the holder to legally provide fiduciary, custody and asset-management services under the New York Banking Law.
“Earning a New York trust charter has been a longstanding objective for Circle given the regulatory clarity that comes with it,” said Jeremy Allaire, Co-Founder, Chairman, and CEO of Circle.
Circle’s stock price remains flat Friday morning at $64.24 and its stablecoin USDC has a market capitalization exceeding $71.8 billion.
Earlier this month, Circle received approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank.
National trust banks are authorized to provide users with custody and fiduciary services but do not accept consumer deposits or make loans like traditional commercial banks.
The stablecoin issuer said the national bank would "enhance the safety and regulatory oversight of the USDC Reserve, while enabling Circle to offer fiduciary digital asset custody and related services to institutional customers."
Several other crypto firms have secured the limited purpose trust charter from the NYFDS prior to Circle, including Coinbase, Moonpay, Bitgo and Paxos.
Circle was the first company to receive a BitLicense from the NYDFS nearly six years ago.
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Why it matters:
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