The approval allows Circle to operate as Circle New York Trust under NYDFS supervision, expanding its stablecoin oversight framework.
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 complements its 2015 BitLicense and strengthens regulatory oversight for its USDC stablecoin operations.
The approval restricts Circle from traditional banking activities like deposits or loans but permits fiduciary services, including digital asset custody. This move follows Circle’s recent federal trust bank approval from the Office of the Comptroller of the Currency, aligning USDC with broader banking frameworks.
Shares of Circle climbed 8.4% to $68.40 following the announcement, reflecting investor confidence in its regulatory expansion.