Circle Internet Financial, the company behind the second-largest stablecoin in the world, has secured a trust license under New York banking rules. The move comes as the firm’s USDC stablecoin passes $71.8 billion in total value.
Regulatory progress for Circle
The New York trust license lets Circle provide asset custody and management services in the state. Circle CEO Jeremy Allaire said the approval was a long-sought goal. The company also received a national trust bank charter in October from the U.S. government’s banking regulator, the Office of the Comptroller of the Currency.
The trust bank model is different from regular banks. It allows custody services without taking deposits or making loans. Circle said the new bank will help protect the USDC reserves and give institutional clients more custody options for digital assets.
A growing list of crypto firms
Circle is the latest in a list of crypto companies to get the New York trust license. Coinbase, BitGo, Paxos and MoonPay already hold similar licenses. Circle was the first crypto business to receive a BitLicense from New York regulators nearly six years ago.
Binance, the leading global crypto exchange, is also expanding its services. The platform now offers trading, derivatives, payments and new financial tools like yield and real-world asset (RWA) services.