Circle (USDC) receives banking licence, shares rise 12%

Circle, the company behind the USDC stablecoin, has been granted approval to operate as a bank by U.S. regulators. The decision allows Circle to offer a broader range of financial services, including deposit-taking and lending, under a traditional banking framework. Following the announcement, Circle’s publicly traded shares increased by 12% in after‑hours trading.

The approval marks the first time a major stablecoin issuer has secured a full banking charter in the United States. Circle will now be subject to the same regulatory oversight as other depository institutions, including capital requirements and consumer protection rules. The company plans to integrate its existing stablecoin infrastructure with the new banking capabilities, aiming to provide seamless fiat‑to‑crypto transactions for its customers.

Industry observers note that the move could set a precedent for other cryptocurrency firms seeking tighter integration with the regulated financial system. By operating as a bank, Circle may enhance trust among institutional investors and broaden the adoption of stablecoins for payments, settlement, and treasury management. The development also reflects ongoing efforts by regulators to create clearer pathways for crypto‑related businesses to comply with existing financial laws.