Circle's Trust Bank Bid: Will This Boost USDC's Market Dominance?

Circle Internet Group, Inc. CRCL, a global fintech leader and issuer of the USDC stablecoin, has formally applied to the Office of the Comptroller of the Currency (OCC) to establish First National Digital Currency Bank, N.A. If approved, this federally regulated trust institution would manage the USDC Reserve and offer digital asset custody services for institutional clients. 

The move is expected to bolster Circle’s regulatory positioning and operational resilience. A federal trust charter would ensure compliance with upcoming legislation like the GENIUS Act, paving the way for the deeper integration of stablecoins into the U.S. financial system. By aligning with OCC oversight, the company aims to enhance confidence among regulators, institutions, and users, which is key to broader USDC adoption.

The trust bank would create new revenue streams through custodial and reserve management services while lowering regulatory friction across jurisdictions. It would also reduce Circle’s reliance on third-party banks, improving cost efficiency and risk management. At present, the company's reserves are managed by BlackRock and held by BNY Mellon.

Unlike traditional banks, CRCL will not be allowed to accept cash deposits or issue loans.

Combined with Circle’s expanding global regulatory footprint—from BitLicense in New York to MiCA compliance in Europe and approvals in Abu Dhabi—this OCC application marks a pivotal step in building secure, compliant infrastructure for digital finance. The move supports the company’s long-term strategy to reinforce the role of USDC in global markets and drive sustainable revenue growth through trust-based, regulatory-first innovation.

What About CRCL’s Competitors?

Robinhood Markets HOOD offers commission-free trading across stocks, ETFs, options and cryptocurrencies. It also provides a cash management account, retirement accounts, margin investing through Robinhood Gold, and recently launched micro futures for select cryptocurrencies. Robinhood platform targets retail investors with a user-friendly app and real-time market data.

Coinbase Global COIN offers a secure platform for buying, selling and storing cryptocurrencies. Its products include spot trading, staking, crypto wallets, institutional custody (Coinbase Prime) and a derivatives exchange. Coinbase also provides a user-friendly mobile app, learning rewards and merchant payment solutions via Coinbase Commerce.

Circle’s Price Performance & Estimate Analysis

Circle, as the first public stablecoin issuer, provides direct exposure to the growth of blockchain-based dollar payments and stands to gain from regulatory clarity under the proposed GENIUS Act. Hence, investors are bullish on CRCL stock, which has soared 117.8% since its IPO on June 5. In comparison, the industry has rallied 8.6% in the same time frame.

The Zacks Consensus Estimate for Circle’s 2025 and 2026 earnings are pegged at $1.21 and $1.56, respectively. In the past week, earnings estimates for both years have remained unchanged.

CRCL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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