Circle has received a limited-purpose trust charter from the New York Department of Financial Services for Circle Internet Trust Company LLC, operating as Circle New York Trust. The approval adds a state layer of oversight to the USDC issuer's business, arriving weeks after Circle won final approval from the U.S. Office of the Comptroller of the Currency to open a national trust bank.
State charter joins federal approval
The New York Department of Financial Services has granted Circle a limited-purpose trust charter for Circle Internet Trust Company LLC, operating as Circle New York Trust, the company said Friday. The approval arrives weeks after Circle won final approval from the U.S. Office of the Comptroller of the Currency to open a national trust bank.
That earlier approval, granted on July 10, established First National Digital Currency Bank, N.A., operating as Circle National Trust, placing fiduciary custody of digital assets under federal oversight. But management of the USDC reserve — the original aim of Circle's OCC application — is deferred to a later phase.
Meanwhile, the New York charter stands as a separate, state-level license. Earlier reporting on Circle's federal approval had already noted that USDC issuance would route through a New York limited-purpose trust company rather than a national bank.
A decade of history with New York regulators
Circle's ties to New York regulators around its USDC stablecoin predate both of this year's charters. The company became the first to receive a BitLicense from NYDFS in 2015, a relationship that now spans more than a decade.
Circle points to regulatory clarity
Jeremy Allaire, Circle's co-founder, chairman and CEO, called the charter a longstanding company objective, saying: "NYDFS is an international standard setter for digital asset regulation". The company also said the approval reflects its continued commitment to safety, transparency and regulatory compliance as digital dollars gain broader adoption.
USDC's place among stablecoins
Circle operates the largest regulated stablecoin network anchored by USDC, alongside its Circle Payments Network and Arc blockchain. USDC ranks as the second-largest dollar-pegged stablecoin, trailing Tether's USDT.
Sources: The Block, Crypto Briefing, Coinpedia Fintech News
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