Circle wins OCC trust bank approval as stablecoin volume hits $1.79 trillion

Circle Internet Group won conditional approval from the Office of the Comptroller of the Currency to open a national trust bank, a regulatory milestone that sent Coinbase Global Inc. shares higher Friday.

"The OCC's approval of a national trust bank for a stablecoin issuer represents a significant step in integrating digital assets into the federal banking system," said Alex Thorn, head of research at Galaxy Digital.

The approval places Circle alongside Paxos as stablecoin issuers with US federal trust bank charters. The development comes as stablecoin transaction volume hit a record $1.79 trillion in June, according to Visa data. Sony Bank also received approval to establish a $40 million US trust bank subsidiary for dollar-denominated stablecoin issuance, with plans to eventually issue its own stablecoin for video game and anime payments.

The OCC approval shows growing federal acceptance of stablecoin infrastructure within the traditional banking system, even as Congressional progress on the CLARITY Act remains stalled. Galaxy Digital cut its odds of the bill becoming law in 2026 to 50 percent, with Thorn warning the legislation may not have enough floor time before the Senate's August recess.

Standard Chartered and Circle last week developed a system allowing institutions to mint and redeem USDC through a bank-led onboarding process, eliminating the need for separate accounts with Circle. The British multinational bank's integration with Circle's stablecoin infrastructure reflects a broader trend of traditional financial institutions seeking to incorporate stablecoin capabilities.

The GENIUS Act, which establishes a federal framework for stablecoins and other digital assets, has advanced through the Senate Banking Committee but faces pushback from most Democrats and the banking industry. JPMorgan Chief Executive Officer Jamie Dimon said banks will continue to "fight" against the current version of the CLARITY Act, arguing that crypto companies wanting to offer yield-bearing products should apply for banking charters.

More than 200 crypto companies and related organizations urged the Senate to pass the CLARITY Act in a letter shared by crypto lobby group Stand With Crypto. The bill is set for a House hearing on July 17.

The OCC's conditional approval of Circle's trust bank application shows that federal regulators are moving ahead with stablecoin oversight under existing banking frameworks, even as Congress debates dedicated legislation. For Coinbase, which has deep commercial ties to Circle through the USDC stablecoin, the regulatory clarity could support expanded custody and payment services. The approval also raises the competitive stakes for other stablecoin issuers seeking federal charters, potentially reshaping the sector for digital asset custody and payment services.

This article is for informational purposes only and does not constitute investment advice.