Circle, a financial services and stablecoin company, announced it has reached another significant milestone in its bid to become one of the most regulated companies in the cryptocurrency industry.
On Friday, the company reported receiving a Limited Purpose Trust charter from the New York Department of Financial Services (NYDFS), allowing it to expand its operations in the state. Under the new charter, the company can provide its clients with asset custody services, issue state-approved stablecoins, and manage the reserves backing them.
NYDFS registers Circle Internet Trust Company as a Limited Purpose Trust Company, while Circle Internet Financial is registered as a money transmitter and a virtual currency business operator under a BitLicense.
The company was one of the first to receive such a license back in 2015, and companies like Mastercard and Galaxy Digital have received theirs much more recently to expand their state operations.
Circle marked the event as confirmation of the company's commitment to complying with "the highest standards of security, transparency, and regulatory compliance," given the stringent vetting established by NYDFS, comparable to that faced by full-fledged commercial banks.
Circle co-founder and CEO Jeremy Allaire noted the importance of this achievement, stating that obtaining this license "has been a long-standing goal for Circle, given the regulatory clarity associated with it."
"NYDFS is an international standard-setter for digital asset regulation, and New York is Circle's global headquarters. This charter reflects over a decade of commitment to compliance and positions USDC within a robust and respected framework as digital dollars become a central feature of the global financial system," Allaire concluded.
The approval of the Limited Purpose Trust charter came after Circle received approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish Circle National Trust, bringing the company's stablecoin issuance activities under federal supervision with the goal of achieving "a new standard for Circle's transparency, governance, and infrastructure scale," as Allaire stated in July.
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