USDC Issuer Circle Wins New York Trust Charter After OCC Approval

Highlights:

• Circle has gained a New York Trust Charter for its newly regulated state trust company.
• NYDFS approval builds on Circle’s 2015 BitLicense and decade-long regulatory relationship.
• Jeremy Allaire noted that the charter fulfills a longstanding goal and strengthens USDC’s regulatory framework.

USDC stablecoin issuer Circle has secured another regulatory approval for its stablecoin business in New York. NYDFS granted Circle Internet Trust Company LLC a limited purpose trust charter on July 31. The entity will operate as Circle New York Trust within Circle’s compliance structure.

New York Trust Charter Deepens Circle’s State Oversight

Circle stated in the press release that the New York Trust Charter strengthens the regulatory foundation surrounding USDC. Notably, the approval places the trust company under direct supervision from New York’s financial regulator. NYDFS regulates limited purpose trusts through regulations related to financial controls, compliance, cybersecurity, and capital governance.

Circle already holds a long record with the agency. In 2015, the company became the first business to receive a BitLicense from NYDFS. That approval allowed Circle to conduct regulated virtual currency activity within New York.

Circle has received a limited purpose trust charter from the New York Department of Financial Services for Circle New York Trust.

A meaningful step in strengthening the regulatory foundation behind Circle and USDC.https://t.co/RXX8Hkg1Yu

— Circle (@circle) July 31, 2026

The latest charter establishes a separate trust unit under state banking law. Limited purpose trust companies cannot generally accept deposits or issue loans. Rather, they are subject to supervision by NYDFS and serve their institutional clients with approved fiduciary and custody functions.

Circle Co-founder Jeremy Allaire described the charter as a goal Circle pursued for years. “The approval will provide the company with regulatory certainty in its home state,” he said. Allaire also called NYDFS an international standard setter for digital asset regulation. In addition, Circle has positioned regulation as a core part of its USDC strategy. The company publishes regular reserve information and offers USDC via the use of regulated affiliates.

Federal Approval Strengthens Circle’s Regulatory Reach

The New York Trust Charter follows Circle’s final federal approval earlier in July. On July 10, the OCC authorized Circle to establish a national trust bank. The institution will operate as Circle National Trust under direct OCC supervision.

Circle Wins Approval to Establish U.S. National Trust Bank, Shares Jump Over 7.7% Premarket

Circle shares rose more than 7.7% in pre-market trading after the company said it received final approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish First… pic.twitter.com/vI6X8zLjoZ

— Wu Blockchain (@WuBlockchain) July 10, 2026

Circle National Trust will focus initially on institutional digital asset custody. Moreover, Circle plans to add USDC reserve management as a later capability. The bank will follow federal trust standards rather than a full commercial banking model.

Therefore, the state and federal approvals cover different parts of Circle’s regulatory structure. NYDFS will oversee Circle New York Trust under state banking law. The OCC will supervise Circle National Trust at the federal level. At the same time, Circle keeps its existing BitLicense and money transmitter permissions. As a result, Circle now operates through several regulated channels across state and federal jurisdictions.

Crypto Trust Charters Draw Wider Scrutiny

The New York Trust Charter approval arrives during wider growth in digital asset trust charters. Connectia Trust, linked to Sony Bank, received national trust charter approval in July. However, Connectia must satisfy operating conditions before launching planned services. Sony has linked the project to a future dollar-backed stablecoin for digital entertainment payments. Proposed uses include games, anime, subscriptions, and other online services.

In May, Senator Elizabeth Warren questioned the OCC regarding recent charter decisions. She questioned whether some companies aimed beyond the traditional trust functions. She requested applications, legal analyses, and communications linked to nine approvals. Warren also argued that trust companies should not operate like full-service banks without matching safeguards.