New Delhi, July 13 -- WASHINGTON - The Office of the Comptroller of the Currency handed Circle Internet Group a national trust bank charter on Thursday, a federal stamp of approval that places USDC, with $73.2 billion in circulation according to Circle, under direct regulatory oversight for the first time in the company's decade-long history.

The new entity, Circle Financial Trust Company, is authorized for fiduciary and custody services but cannot take deposits or extend credit. That narrower mandate was deliberate. Circle is positioning itself not as a competitor to commercial banks but as a federally recognized custodian for institutional clients who need a regulated counterparty when handling digital assets.

Jeremy Allaire, Circle's...