$60 billion in assets self-custody, "the first stablecoin stock" Circle applies for a federal trust bank license.

Original | Odaily Daily Report (@OdailyChina)

Author | Ethan (@ethanzhang_web3)

On June 30, Eastern Time, the stablecoin issuer, "the first stock of stablecoin" Circle (CRCL), announced that it has officially submitted an application to the Office of the Comptroller of the Currency (OCC) to establish a federal trust bank named "First National Digital Currency Bank, N.A.".

According to an announcement on Circle's official website, once approved, the bank will become Circle's first federally regulated custodian entity, capable of independently managing its over $60 billion in USDC reserve assets, and will also provide digital asset custody services (especially tokenized bonds and stocks) for institutional clients.

Unlike traditional banks, this license does not allow for accepting cash deposits or issuing loans, and is closer to the "federal trust company" model. Currently, only Anchorage Digital in the United States has obtained a similar license, and Circle may become the first holder of a self-custody license in the stablecoin issuance field.

Why Apply? Circle's Ambition for a "New Financial Architecture" Is Gradually Taking Shape.

This is not a short-term business adjustment, but rather a comprehensive strategic advancement by Circle as a "stablecoin infrastructure provider."

The "GENIUS Act" passed in mid-June is pushing stablecoins into an era of "regulated and compliant transparency," with clear requirements for asset custody isolation, transparent disclosure, and the qualifications of regulated financial institutions. (For more details, we recommend: "Reshaping Global Finance's 'Water, Electricity, and Coal': How does the 'GENIUS Act' Ignite the Regulatory Bull Market for Circle and Stablecoins?")

If Circle is allowed to establish a federal trust bank, it will not only be able to bypass traditional bank custodians (such as the current Bank of New York Mellon), but also circumvent external regulatory blind spots, reclaim control over core asset management, and significantly enhance business resilience.

Rather than saying that Circle is applying for a license, it is more accurate to say that it is building the future "digital dollar operating system." Whether it is the issuance of USDC, RWA custody, or payment settlement cooperation with Visa, Stripe, and others, a more robust self-control and compliance property is required for the underlying architecture of stablecoins.

Circle's move is not only a change in custody rights but also a self-establishment of its position as the "dollar on-chain executor."

Market Commentary

After this announcement, the industry generally believes that Circle's move is a "deep integration" with U.S. regulation, and can even be seen as an important step in the process of "nationalizing stablecoins."

Mr. Man, a crypto investor and forex trader, believes that if this license is approved, Circle will operate as a federally regulated trust bank, directly connecting to the Federal Reserve payment system. USDC will be able to move in and out of the Federal Reserve financial pipeline like funds from traditional clearinghouses, no longer relying on intermediary banks.

Technical analyst and crypto content creator ALLINCRYPTO stated that once approved, Circle can directly provide digital asset custody for institutions, making it easier for mainstream companies to integrate USDC.

Some institutional investors believe that Circle is far ahead in the compliance race, especially after obtaining the EU MiCA authorization and the principle-based license from Abu Dhabi MSB. The federal license under the "OCC+GENIUS" system will open the door for it to global central bank-level clients.

However, there are also some voices that take a cautious stance. Citigroup analysts stated: "Although the long-term trend is bullish, the business model of stablecoins has not yet been proven, and Circle's current market value premium is already quite aggressive." According to statistics from data firm S3 Partners, short positions in Circle have been increasing daily since its listing, and it has now become one of the most shorted stocks in the US blockchain sector.

Conclusion: Circle is not trying to be a bank, but to redefine the "bank of the dollar".

Circle wants to apply not as a commercial bank as we understand it, but as the architect of a new type of digital dollar financial carrier.

It does not engage in lending, does not accept deposits, and does not intervene in the interest rate market, but focuses on basic services for on-chain US dollars, on-chain assets, and on-chain settlements. This is different from Tether's focus on trading; what Circle is betting on is the infrastructure-level battlefield of how stablecoins will be integrated by countries, institutions, and even clearing systems in the next decade. *(For more details, see: "Circle and Tether may not be competing species, the value realization hierarchy model of stablecoins says so") *

IPO is a financing node, licensing is the cornerstone of compliance, whether it can become a "sovereign agent of on-chain dollars" now depends on whether this license gets approved.