Circle received a limited purpose trust charter from the New York Department of Financial Services (NYDFS). This authorization allows its subsidiary, Circle New York Trust, to operate as a regulated entity under New York’s financial oversight. The move is designed to enhance the safety and transparency of the USDC stablecoin.
Circle previously became the first company to receive a BitLicense from the NYDFS in 2015. This new charter positions USDC within a formal framework as digital dollars gain prominence in the global financial system.
CEO Jeremy Allaire stated the charter provides regulatory clarity and was a longstanding objective for the firm. He emphasized that the NYDFS is an international standard-setter for digital asset regulation, further solidifying USDC’s role as a regulated digital dollar.