The approval allows Circle to offer digital asset custody in New York without accepting deposits or loans.
Circle has obtained a limited-purpose trust charter from the New York Department of Financial Services (NYDFS), enabling it to operate as Circle New York Trust. The charter permits digital asset custody but prohibits deposit-taking or lending activities typical of traditional banks.
The approval follows Circle’s recent federal banking charter and its acquisition of IBM’s blockchain patents. The company previously secured a BitLicense in 2015, reinforcing its regulatory compliance as USDC adoption grows.
CEO Jeremy Allaire called the charter a milestone, positioning USDC within a regulated framework as digital dollars gain prominence in global finance. The NYDFS will supervise Circle New York Trust’s operations.