Circle Internet Group Secures New York Trust Charter

Circle Internet Group (NYSE: $CRCL), the issuer of USD Coin (CRYPTO: $USDC), has secured a trust charter from New York State's Department of Financial Services.

Circle is responsible for the world's second-largest stablecoin. Its USDC stablecoin has a market capitalization of $71.8 billion U.S.

The trust charter is an official state banking authorization that allows it to provide fiduciary, custody, and asset-management services under the New York Banking Law.

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"Earning a New York trust charter has been a longstanding objective for Circle given the regulatory clarity that comes with it," said the company in a news release.

Earlier in July, 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 custody and fiduciary services but do not accept consumer deposits or make loans like traditional lenders.

Circle said becoming a national bank will "enhance the safety and regulatory oversight" of its stablecoin reserves.

Several other crypto firms have secured trust charters in New York State, including Coinbase Global (NASDAQ: $COIN).

CRCL stock has declined 67% over the last 12 months to trade at $59.76 U.S. per share.

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