Circle receives New York trust charter from NYDFS for USDC operations

Jul 31, 2026

Circle, issuer of the USDC stablecoin, has secured a limited-purpose trust charter from the New York Department of Financial Services (NYDFS). This allows Circle to hold its own reserves under the strict supervision of the state regulator, complementing a recent federal charter from the OCC. The move strengthens USDC's regulatory foundation as the world's second-largest stablecoin, with a market cap near $73.7 billion.

NYDFS trust charter approval

▪Circle received a limited-purpose trust charter from the New York Department of Financial Services (NYDFS) for its USDC stablecoin business.
▪The charter allows Circle to operate as Circle New York Trust and hold its own multi-billion-dollar USDC reserves under direct NYDFS supervision.
▪A limited-purpose trust company can provide digital asset custody but cannot accept customer deposits or make loans like a traditional bank.

Circle's regulatory history

▪Circle CEO Jeremy Allaire stated that earning the New York trust charter has been a longstanding objective for the company.
▪Circle was one of the first companies to receive a BitLicense from the NYDFS in 2015.

NYDFS licensing standards

▪The 2025 GENIUS Act allows stablecoin issuers below a $10 billion supply benchmark to operate under state rules if they are substantially similar to federal provisions.
▪The NYDFS is considered one of the strictest state-level financial regulators, with its licensing bar regarded as one of the highest.
▪Other crypto firms with an NYDFS limited-purpose trust charter include Coinbase, Moonpay, Bitgo, and Paxos.

Circle's expanding authorizations

▪Circle recently acquired IBM's blockchain patent portfolio, adding nearly 1,000 patents.
▪The new state charter complements a national trust bank charter Circle received final approval for from the Office of the Comptroller of the Currency (OCC) in July 2026.
▪In June 2026, BNY Mellon made USDC the first stablecoin available on its digital asset custody platform.

USDC market position

▪USDC is the world's second-largest stablecoin, with a market capitalization near $73.7 billion.
▪Tether is the largest stablecoin with a market capitalization of roughly $186 billion.
▪Competitor Ripple received a similar NYDFS approval for its RLUSD stablecoin in December 2024.

CRCL stock performance

▪Other reports on July 31, 2026, showed Circle's (CRCL) stock falling to $60.78 or trading flat between $61 and $64.24.
▪On July 31, 2026, reports on Circle's (CRCL) stock performance were contradictory, with one source citing a rise of 8.4% to $68.40.
▪The 52-week trading range for CRCL stock is reported as $49.90 to $189.92.