- NYDFS granted Circle a limited purpose trust charter in New York.
- The charter expands Circle’s regulated custody and fiduciary services.
- Circle now holds separate trust approvals from both NYDFS and the OCC.
Circle announced on Friday that the New York Department of Financial Services granted a limited purpose trust charter to Circle New York Trust. According to Circle, the approval authorizes Circle Internet Trust Company LLC to operate under New York Banking Law while expanding its regulated custody and fiduciary capabilities. CEO Jeremy Allaire said the charter reflects more than a decade of engagement with the state regulator.
NYDFS Adds New Approval For Circle
According to Circle, the limited purpose trust charter strengthens the regulatory framework supporting USDC and the company’s operations in New York. The company said its global headquarters are located in New York and described the approval as a longstanding objective.
Jeremy Allaire said the charter provides additional regulatory clarity for Circle’s business. He also described the New York Department of Financial Services as an international standard for digital asset regulation.
Circle noted that it became the first company to receive a BitLicense from the NYDFS in 2015. The company said the latest approval continues that regulatory relationship.
Charter Expands Trust Services
According to the announcement, the trust charter allows Circle New York Trust to provide fiduciary, custody and asset management services under New York Banking Law. Unlike traditional commercial banks, trust companies do not accept consumer deposits or issue loans.
Early last month, Circle also received approval from the Office of the Comptroller of the Currency to establish Circle National Trust. According to Circle, the national trust bank will provide digital asset custody and fiduciary services while enhancing oversight of USDC reserves.
The company said the OCC approval and the New York trust charter represent separate regulatory authorizations. Both approvals expand Circle’s regulated trust operations in the United States.
USDC Business Continues Under Regulatory Oversight
According to reports, USDC remains the second-largest stablecoin by market capitalization. Circle’s stock traded around $64.24 following Friday’s announcement, while USDC’s market value exceeded $71.8 billion.
Circle joins several digital asset companies that previously secured limited purpose trust charters from the NYDFS, including Coinbase, MoonPay, BitGo and Paxos.
The NYDFS recently proposed updated reserve requirements as it aligns state rules with the federal GENIUS Act. Acting Superintendent Kaitlin Asrow previously said New York’s framework has supported stable digital asset markets while protecting consumers.