Circle applies for US banking license to custody USDC reserves

PANews reported on July 1 that stablecoin issuer Circle has applied for a U.S. national banking license, which will allow it to serve as a custodian of USDC reserves and hold crypto assets for institutional clients. However, the license does not allow Circle to accept cash deposits or make loans like traditional banks. Circle plans to name the entity regulated by the U.S. Office of the Comptroller of the Currency (OCC) First National Digital Currency Bank, NA

Analysts believe that Circle's USDC could become the largest regulated stablecoin under the GENIUS Act, giving it a "regulatory advantage." Currently, USDC has a market value of $61.5 billion.