Circle secures limited purpose trust charter in New York for subsidiary entity
The approval of the New York trust charter enables Circle's subsidiary to deliver custody and fiduciary services in compliance with state banking regulations.
On Friday, Circle announced that its subsidiary, Circle Internet Trust Company LLC, has been awarded a limited purpose trust charter by the New York Department of Financial Services (NYDFS).
According to the NYDFS, a limited purpose trust charter is granted under New York Banking Law to institutions that lack the general authority to make loans or accept deposits that traditional banking institutions possess.
Rather, entities holding such charters are permitted to exercise fiduciary powers and engage in various activities including securities clearance, transfer agency services, corporate trust operations, investment management, and custodial services. The NYDFS further indicates that certain applicants pursue authorization to participate in virtual currency-related business activities.
Earning a New York trust charter has been a longstanding objective for Circle given the regulatory clarity that comes with it
CEO Jeremy Allaire
In 2015, Circle became the first company to be awarded a NYDFS BitLicense, which authorized the company to operate virtual currency business activities within New York.
The company is responsible for issuing USDC, a stablecoin pegged to the US dollar, which currently holds a market capitalization of $71.8 billion, positioning it as the second-largest stablecoin after Tether USDt (USDT) and ranking as the fifth-largest cryptocurrency overall.