Circle Inc. announced that it has obtained a limited purpose trust license from the New York State Department of Financial Services (NYDFS). This state-level banking authorization allows it to provide trusteeship, custody, and asset management services in accordance with New York banking laws, further advancing the company's compliance strategy in the stablecoin and digital asset businesses.
Trusteeship and escrow services are available
According to the company's disclosure, this license is a formal banking permit under the New York State financial regulatory system. Once approved, Circle can legally conduct trusteeship, asset custody, and related management business in the state.
Circle co-founder and CEO Jeremy Allaire stated that obtaining a New York trust license has always been a long-term goal for the company because it would bring a clearer regulatory environment.
The establishment of the National Trust Bank has been approved this month.
Prior to this New York State license, Circle had earlier this month received approval from the Office of the Comptroller of the Currency (OCC) to establish a national trust bank.
The company previously stated that National Trust Bank will enhance the security and regulatory coverage of USDC reserves, while enabling Circle to offer digital asset custody and related trust services to institutional clients. Unlike traditional commercial banks, these institutions do not accept consumer deposits or issue loans.
Several crypto companies in New York have already obtained licenses.
Prior to Circle, crypto companies such as Coinbase, MoonPay, BitGo, and Paxos had already obtained New York State limited purpose trust licenses. Circle was also the first company to obtain a New York State BitLicense.
As of press time, Circle's stock price was essentially flat in early trading on Friday, at $64.24. USDC currently has a market capitalization of over $71.8 billion, remaining the world's second-largest stablecoin.
Additional information:The New York State Department of Financial Services has long been one of the strictest state-level regulatory agencies in the U.S. crypto industry, and its licenses are generally considered an important compliance basis for institutions to conduct custody, payments, and stablecoin businesses.
