- Circle became the first digital asset company to receive a de novo federal trust bank charter in the U.S.
- The new trust bank will initially provide custody services before eventually overseeing USDC reserves.
- Circle says regulatory clarity and stablecoin adoption could accelerate blockchain-based payment infrastructure growth.
Circle has begun operating under a newly approved federal trust bank charter after becoming the first digital assets company to receive a de novo federal trust bank license in U.S. history. Speaking on Fox Business, Circle President Heath Tarbert said the new entity will initially custody Circle’s digital assets before eventually managing USDC reserves under the regulatory framework established by the GENIUS Act.
Federal Charter Expands Circle’s Role
According to Heath Tarbert, Circle built the federal trust bank from the ground up rather than converting an existing institution. He described the approval as a historic milestone for the digital asset sector.
Tarbert said the trust bank is already open for business. Initially, it will provide custody services for Circle and its affiliates before expanding those services over time.
He added that the long-term objective is for the trust bank to oversee USDC reserves. According to Tarbert, the arrangement will place those reserves under the standards required by the GENIUS Act.
Stablecoin Adoption Remains A Focus
Turning to stablecoins, Tarbert said they allow users to transfer dollar-denominated value over blockchain networks. He added that stablecoins operate differently from bank deposits because they remain fully backed by high-quality liquid assets.
According to Tarbert, Circle expects broader adoption across several financial activities. Those include cross-border payments, treasury management, settlement, and margin transfers.
He also cited industry projections estimating the stablecoin market could reach $1.45 trillion by 2035. Tarbert said regulatory developments, including the GENIUS Act, could support that growth by integrating stablecoins into U.S. financial infrastructure.
Regulatory Clarity And Competition
Tarbert also addressed the pending Clarity Act. He said additional legal certainty would help traditional financial institutions participate in blockchain-based payment systems. According to Tarbert, many financial firms want to move value on-chain but continue waiting for clearer federal rules.
He described the legislation as important for payment infrastructure and broader financial innovation. He also welcomed growing competition in the stablecoin sector, including new consortium-backed initiatives.
However, Tarbert said USDC currently operates across 34 blockchains with approximately $73 billion in circulation. He added that Circle remains focused on expanding its infrastructure while continuing long-term development of its digital payment network.
