Circle Wins OCC Trust Bank Approval, New Stablecoin Rival Launches

Stablecoin issuer Circle secured final OCC approval for a national trust bank on July 10, sending its stock up over 14% in premarket trading. The new bank, Circle National Trust, will initially provide custody services for Circle and its affiliates, with potential expansion to institutional clients Source: CNBC. Meanwhile, a consortium of over 140 companies, including Visa, Mastercard, and Coinbase, launched Open USD on June 30, a rival stablecoin designed to undercut Circle's market dominance Source: CNA.

OCC Approval for Circle

The Office of the Comptroller of the Currency (OCC) granted Circle final approval to establish a national trust bank, bringing its operations under federal oversight. CEO Jeremy Allaire called it "a defining step in bringing blockchain technology and digital assets into the core of the U.S. financial system" Source: Cointelegraph. The charter does not allow commercial banking but enables direct management of USDC reserves Source: CNBC. Circle's stock rose sharply, though it remains down 20.5% year-to-date Source: CNA.

New Competitor: Open USD

Open Standard, an independent company backed by over 140 firms, launched Open USD (OUSD) as a no-fee, open stablecoin. The structure shares reserve income with partners, directly threatening Circle's revenue model Source: TheNextWeb. Circle shares fell 15-17% on the announcement day Source: TheNextWeb. The GENIUS Act, signed into law in 2025, has enabled this wave of new entrants Source: Engadget.

Key points:

• Circle's market cap: ~$15.7 billion; USDC market cap: $73.3 billion Source: CNA, Cointelegraph.
• Open USD will be mintable and redeemable at no cost with no volume caps Source: TheNextWeb.
• Founding partners include BlackRock, BNY, Google, and Ripple Source: Gizmodo.