Circle wins New York trust charter for Circle Internet Trust Company LLC

Circle said the New York Department of Financial Services has granted a limited-purpose trust charter to Circle Internet Trust Company LLC, doing business as Circle New York Trust, adding another state-level authorization for the USDC issuer. The company said the approval expands its regulated operations in its home state and builds on its relationship with the NYDFS, which began in 2015 when Circle became the first digital asset company to receive a BitLicense. The new charter goes beyond that earlier license by placing Circle under New York trust company rules and direct state financial supervision. A limited-purpose trust company cannot take deposits or make loans like a traditional bank, but it can custody digital assets and act as a fiduciary for clients under New York banking law. Jeremy Allaire said obtaining a New York trust charter had been a long-term objective for the company because of the regulatory credibility associated with the state framework. The approval comes after the U.S. Office of the Comptroller of the Currency approved Circle’s application to establish a nationwide trust bank, giving the company both a federal and a state-level trust structure. It also follows Circle’s acquisition of IBM’s blockchain patent portfolio, described as nearly 1,000 patents spanning blockchain technology, financial services and enterprise software, which Circle said it plans to apply across USDC, Circle Payments Network and Arc. Yahoo Finance reported Circle’s stock closed up 8.4% at about $68.40 on the day of the announcement, reflecting a positive market reaction to the expanding regulatory footing.