Circle receives New York trust charter for subsidiary

cointelegraphPublished on 2026-07-31Last updated on 2026-07-31

Abstract

Circle, the issuer of the USDC stablecoin, has received a limited purpose trust charter from the New York Department of Financial Services (NYDFS) for its subsidiary, Circle Internet Trust Company LLC. This charter, granted under New York Banking Law, allows the entity to exercise fiduciary powers and conduct activities like custodial services and investment management, but not traditional deposit-taking or lending. The NYDFS noted that such charters can be sought for virtual currency-related activity. Circle CEO Jeremy Allaire stated that obtaining this charter was a key goal for the regulatory clarity it provides. Circle was also the first company to receive a NYDFS BitLicense in 2015. USDC, with a market cap of $71.8 billion, is the second-largest stablecoin.

Circle said Friday that the New York Department of Financial Services (NYDFS) has granted a limited purpose trust charter to its subsidiary, Circle Internet Trust Company LLC.

A limited purpose trust charter is issued under New York Banking Law for institutions that do not have the general power to accept deposits or make loans like traditional banks, according to the NYDFS.

Instead, charter holders may exercise fiduciary powers and conduct activities such as custodial services, investment management, corporate trust, transfer agency and securities clearance. NYDFS also notes that some applicants seek to engage in virtual currency-related activity.

“Earning a New York trust charter has been a longstanding objective for Circle given the regulatory clarity that comes with it,” CEO Jeremy Allaire said in a press release.

Circle was the first company to receive a NYDFS BitLicense in 2015, allowing it to conduct virtual currency business in New York.

The company issues the US dollar-pegged stablecoin USDC, which has a market capitalization of $71.8 billion, making it the second-largest stablecoin behind Tether USDt (USDT) and the fifth-largest cryptocurrency.

Related: BOJ intervenes to defend yen near 160, holds rates steady

Related Questions

QWhat is the significance of Circle receiving a limited purpose trust charter in New York?

AThe limited purpose trust charter granted by the New York Department of Financial Services (NYDFS) provides Circle with regulatory clarity and allows its subsidiary to legally operate as a trust company. This enables them to conduct specific activities like custodial services, investment management, and virtual currency-related business under New York law, without being a full-service bank.

QAccording to the article, what key activities can a holder of a NYDFS limited purpose trust charter perform?

AHolders of a NYDFS limited purpose trust charter may exercise fiduciary powers and conduct activities such as custodial services, investment management, corporate trust, transfer agency, securities clearance, and virtual currency-related activities. They are not authorized to accept deposits or make loans like traditional banks.

QWhat previous New York regulatory approval had Circle obtained, and when?

ACircle was the first company to receive a NYDFS BitLicense in 2015. This license allowed Circle to conduct virtual currency business operations in the state of New York.

QWhich stablecoin does Circle issue, and what is its current market ranking?

ACircle issues the US dollar-pegged stablecoin USDC. With a market capitalization of $71.8 billion, it is the second-largest stablecoin behind Tether USDt (USDT) and the fifth-largest cryptocurrency overall.

QWhy was obtaining a New York trust charter a 'longstanding objective' for Circle, according to CEO Jeremy Allaire?

ACEO Jeremy Allaire stated that earning a New York trust charter was a longstanding objective for Circle because of the regulatory clarity that comes with it. This charter provides a clear legal and operational framework for their business activities in New York.

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