- Circle receives final OCC approval to establish Circle National Trust, a federally regulated trust bank.
- The bank will initially offer digital asset custody for Circle and affiliates, with potential future management of USDC reserves.
- USDC now commands 67% of adjusted stablecoin transaction volume, overtaking USDT, according to Visa data.
- Kraken becomes first U.S. exchange to support USDC.e on the Tempo network, enabling sub-second settlements.
Circle Internet Group has secured a major regulatory win with the final approval from the U.S. Office of the Comptroller of the Currency to launch a national trust bank. The new entity, called Circle National Trust, will operate under federal oversight and is set to reshape how the company manages its stablecoin infrastructure. This move brings the world’s largest regulated stablecoin, USDC, closer to traditional banking standards.
The approval, announced on July 10, 2026, comes after Circle submitted its application in June 2025 and received conditional approval in December of that year. It marks a significant step in integrating blockchain technology into the core U.S. financial system, as Circle CEO Jeremy Allaire described it as a “defining step” for transparency and governance. The bank will initially focus on fiduciary digital asset custody for Circle and its affiliates, with plans to eventually expand services to a limited number of institutional clients, including banks and regulated derivatives firms.
Circle National Trust: A New Federally Regulated Bank for Digital Assets
Circle National Trust will operate as a national trust bank under the OCC, the primary regulator for national banks. This structure aligns digital asset infrastructure with the longstanding role of trust banks in safeguarding client assets under strict fiduciary standards. The charter is designed to enable future capabilities, including management of the USDC Reserve, which would bring those operations under direct federal oversight and further enhance safety and transparency.
Circle’s regulatory footprint has been expanding globally. The company was the first to receive a BitLicense from the New York Department of Financial Services in 2015, and in 2024 it became the first global stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets (MiCA) framework. It also holds licenses in the UK, Singapore, Bermuda, and Abu Dhabi, and has met Canadian requirements. This latest OCC approval adds another layer to its already extensive regulatory portfolio.
Market Reaction and Analyst Caution
Following the announcement, Circle’s stock (CRCL) surged about 16% in pre-market trading, climbing above $73. However, the gains were short-lived. By the next trading session, shares had given back most of those gains, trading around $63. Japanese investment bank Mizuho issued a note cautioning that the market reaction might be overly optimistic. Analysts led by Dan Dolev reiterated a neutral rating, arguing that the approval does not resolve fundamental issues weighing on the stock, such as a decline in USDC’s market capitalization since March 2026.
USDC’s market cap currently stands at $73.3 billion, according to CoinGecko. While it has increased 16.7% over the past year from $62.8 billion, it has declined 2.5% year-to-date from $75.2 billion. The mixed signals highlight the challenges Circle faces despite the regulatory milestone, although Citigroup maintains its price target for Circle.
USDC Dominates Stablecoin Transaction Volume
Meanwhile, data from Visa’s onchain analytics dashboard, powered by Allium, reveals a dramatic shift in stablecoin usage. Adjusted stablecoin transaction volume reached $1.8 trillion in the last 30 days, with USDC accounting for roughly 67% of that volume. This marks a complete reversal from 2023, when USDT held 85% dominance. USDC on Ethereum alone has accumulated $3.7 trillion in cumulative adjusted volume, ahead of USDT on Tron at $3.3 trillion. Adding USDC on Solana ($2.3 trillion) and Base ($1.6 trillion) pushes its lead even further.
The shift is driven by regulatory and infrastructure factors. USDT is not MiCA-compliant, prompting European platforms to delist it, while USDC holds full authorization. In the U.S., the GENIUS Act’s upcoming regulations favor compliant stablecoins. Additionally, settlement is migrating to cheaper, faster networks like Base and Solana, where gas costs are negligible. Retail-sized transactions, defined by Visa as sub-threshold consumer payments, accounted for $6.8 billion across 136 million transactions in the last 30 days, equivalent to about 4.5 million payments per day. Weekend activity also suggests consumer spending rather than institutional trading.
Kraken Integrates Tempo Network for USDC.e
In another development, Kraken has become the first U.S. centralized exchange to support deposits and withdrawals of USDC.e on the Tempo network. Tempo is a purpose-built Layer 1 blockchain for payments, incubated by Paradigm and Stripe. It offers sub-second settlement with no re-orgs and stablecoin-native gas, meaning users can pay transaction fees in USD stablecoins without needing a separate token. This integration gives fintechs, neobanks, and payment companies building on Tempo access to Kraken’s full stack, further expanding USDC’s utility in real-world payments.
All these developments paint a picture of a stablecoin ecosystem that is maturing rapidly. Circle’s regulatory advances, USDC’s growing transaction dominance, and infrastructure integrations like Tempo suggest that stablecoins are increasingly functioning as a payment layer for the global economy. While challenges remain, the trajectory points toward deeper integration with traditional finance.
