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10h ago

Circle Seeks National Trust Bank Charter as Analysts Diverge on Stock Valuation

The application complements its regulatory push under the GENIUS Act by enabling self-custody of USDC reserves for institutional clients.

Traders work on the floor at the New York Stock Exchange (NYSE), on the day of Circle Internet Group's IPO, in New York City, U.S., June 5, 2025. REUTERS/Brendan McDermid/File Photo
Circle logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • Circle applied to the Office of the Comptroller of the Currency for a national trust bank charter that would allow it to custody USDC reserves and hold tokenized assets for institutional clients.
  • Barclays, Bernstein, Canaccord Genuity and Needham initiated coverage with buy-equivalent ratings and price targets exceeding $200, reflecting confidence in Circle’s stablecoin network and regulatory positioning.
  • J.P. Morgan and Goldman Sachs launched coverage with underweight and neutral stances, respectively, citing the stock’s rapid 161% post-debut surge as a risk to its valuation.
  • Circle’s USDC issuance underpins nearly all of its interest-driven revenue through fully reserved, dollar-backed stablecoins, which collectively exceed $60 billion in circulation.
  • The move aligns with June’s Senate-approved GENIUS Act, which established the first federal framework for stablecoins and is expected to broaden institutional adoption.