Circle Lands New York Trust Charter as Stablecoin Issuer Expands Regulatory Footprint

Circle has received a limited purpose trust charter from the New York Department of Financial Services (NYDFS), giving the USDC stablecoin issuer another regulatory approval as it expands its operations.

The company said Friday that under the charter Circle will do business as Circle New York Trust, noting that the charter builds on the BitLicense it received in 2015.

“Earning a New York trust charter has been a longstanding objective for Circle,” CEO Jeremy Allaire said in a statement, calling the approval an important milestone for the company. “This charter reflects over a decade of regulatory commitment and positions USDC within a strong, respected framework as digital dollars become central to the global financial system.”

The charter places Circle New York Trust under the supervision of the New York Department of Financial Services. A limited purpose trust company cannot accept customer deposits or make loans like a traditional bank. Instead, it can provide services such as holding digital assets on behalf of customers and acting in a fiduciary role under New York banking law.

Following the announcement, shares of Circle rose 8.4% on the day at around $68.40, according to Yahoo Finance.

The announcement follows several recent moves by Circle.

Earlier this month, the Office of the Comptroller of the Currency approved the company’s application to establish a national trust bank, allowing Circle to move key USDC operations under a federal banking framework and offer digital asset custody services.

More recently, on Monday, Circle acquired IBM’s blockchain patent portfolio, adding nearly 1,000 patents covering blockchain technology, financial services, and enterprise software. The company said it plans to use the portfolio across USDC, the Circle Payments Network, and its Arc blockchain.