Circle Internet Group (CRCL), the issuer of the dollar-backed stablecoin USDC, announced that it has received a limited-purpose trust charter from the New York State Department of Financial Services (NYDFS). The new entity will operate under the legal name Circle Internet Trust Company LLC and will be known as Circle New York Trust.
In a statement released Friday, the company said the move strengthens its regulatory position in New York, which it considers a key financial center. The charter follows Circle’s approval from the Office of the Comptroller of the Currency (OCC) earlier this month to establish a national trust bank.
Two approvals at different regulatory levels
Circle’s two recent approvals serve different purposes. On July 10, the OCC authorized the creation of First National Digital Currency Bank N.A., which will operate under the Circle National Trust brand at the federal level.
The institution will be able to provide fiduciary custody services for digital assets. Although managing USDC reserves was a central part of Circle’s original application, that function was deferred to a later stage.
The New York charter adds a separate regulatory layer at the state level. Circle had already stated in earlier federal filings that USDC issuance would take place through a New York-based limited-purpose trust company rather than the national trust bank.
Circle became the first company to receive a BitLicense from the NYDFS in 2015. The new charter extends a regulatory relationship that now spans more than a decade.
Allaire: “Something we have pursued for a long time”
Circle co-founder, chairman and CEO Jeremy Allaire said obtaining the New York trust charter had been a long-standing priority for the company. According to Allaire, the regulatory clarity provided by the charter played a decisive role in that goal.
The CEO also described the NYDFS as an international reference point for digital asset regulation. He said the framework places USDC in a strong position as digital dollars move closer to the center of the global financial system.
Circle is not the first crypto company to receive a similar limited-purpose trust charter from the NYDFS. Coinbase, MoonPay, BitGo and Paxos have already secured comparable approvals, making Circle the latest major industry name to join the list.
Market reaction and USDC’s position
Circle shares traded at $64.24 on Friday morning, remaining close to their previous closing level. USDC’s market capitalization has surpassed $71.8 billion, making it the world’s second-largest stablecoin behind Tether’s USDT.
Alongside USDC, Circle operates the Circle Payments Network and the Arc blockchain. The company’s successive federal and state-level approvals represent concrete steps in its plan to expand custody and fiduciary services for institutional clients.
