Circle announced on Friday that the New York Department of Financial Services (NYDFS) has granted a limited purpose trust charter to its subsidiary, Circle Internet Trust Company LLC. The charter enables the subsidiary to offer fiduciary and custody services under New York state banking law.

A limited purpose trust charter is issued under New York Banking Law and is designed for institutions that do not possess the general authority to accept deposits or extend loans in the manner of traditional banks, according to the NYDFS. Instead, charter holders may exercise fiduciary powers and conduct activities including custodial services, investment management, corporate trust, transfer agency, and securities clearance. The NYDFS also notes that some applicants pursue this charter to engage in virtual currency-related activity. Other digital asset firms operating under NY trust charters include Paxos Trust Company and Gemini Trust Company, placing Circle within a small group of crypto companies that have navigated New York's dual licensing framework.

"Earning a New York trust charter has been a longstanding objective for Circle given the regulatory clarity that comes with it," said Circle CEO Jeremy Allaire in a press release.

The trust charter builds on Circle's existing regulatory footprint in New York. In 2015, Circle became the first company to receive a NYDFS BitLicense, authorizing it to conduct virtual currency business in the state. The BitLicense regime, established by NYDFS, is widely regarded as one of the most stringent state-level regulatory frameworks for digital asset businesses in the United States.

Circle is the issuer of USDC, a US dollar-pegged stablecoin. USDC has a market capitalization of approximately $71.8 billion, making it the second-largest stablecoin by market value behind Tether's USDt (USDT) and the fifth-largest cryptocurrency overall. Stablecoins are digital tokens designed to maintain a stable value by pegging to a reference asset, typically a fiat currency such as the US dollar. The trust charter status positions USDC's custodian within a fiduciary framework, a factor that institutional clients often weigh when selecting regulated partners for digital asset custody.

The limited purpose trust charter places Circle's subsidiary under direct NYDFS supervision, subjecting it to the department's regulatory and examination requirements. New York's banking regulators have increasingly positioned the state as a jurisdiction that offers structured oversight for digital asset firms, with the trust charter and BitLicense serving as two primary licensing pathways. The approval also arrives as federal lawmakers and regulators continue to debate broader stablecoin legislation, including proposals that would establish national-level rules for stablecoin issuance and reserves.