Circle has been granted a limited-purpose trust charter by the New York Department of Financial Services (NYDFS), enabling the USDC stablecoin issuer to operate as Circle New York Trust and provide digital asset custody services under state supervision.

The company announced Friday that the charter builds upon the BitLicense Circle obtained in 2015. Under the new designation, Circle New York Trust can hold digital assets on behalf of customers and serve in a fiduciary capacity under New York banking law. However, as a limited-purpose trust company, it cannot accept customer deposits or extend loans in the manner of a traditional bank.

New York is widely regarded as one of the most stringent crypto regulatory environments in the United States, and securing its trust charter has historically served as a credibility marker for digital asset firms seeking institutional partnerships. USDC ranks as the second-largest stablecoin by market capitalization, behind Tether's USDT.

"Earning a New York trust charter has been a longstanding objective for Circle," CEO Jeremy Allaire said in a statement. "This charter reflects over a decade of regulatory commitment and positions USDC within a strong, respected framework as digital dollars become central to the global financial system."

The New York charter places Circle New York Trust under NYDFS supervision.

Following the announcement, Circle shares rose 8.4% to approximately $68.40, according to Yahoo Finance.

The trust charter approval follows a series of strategic regulatory and corporate moves by Circle. Earlier in July, the Office of the Comptroller of the Currency (OCC) approved the company's application to establish a national trust bank, enabling Circle to transition key USDC operations under a federal banking framework and offer digital asset custody services.

Together, the state and federal charters layer Circle under multiple regulatory regimes at a time when stablecoin oversight is intensifying. The GENIUS Act, landmark federal stablecoin legislation signed into law in 2025, established national requirements for reserves, disclosures, and supervision of payment stablecoin issuers, adding a further compliance framework that Circle's expanded charter portfolio positions it to navigate.

On Monday, Circle acquired IBM's blockchain patent portfolio, adding nearly 1,000 patents covering blockchain technology, financial services, and enterprise software. The company stated it intends to deploy the portfolio across USDC, the Circle Payments Network, and its Arc blockchain.

Circle's official announcement described the New York trust charter as an important milestone in the company's broader regulatory expansion.