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Circle Internet Applies for Bank Charter, Stock Gains 2%

Aditya Raghunath
Aditya Raghunath5 minute read
Reviewed by: Thomas Richmond
Last updated Jul 1, 2025
Circle Internet Applies for Bank Charter, Stock Gains 2%

@Juan Roballo from Juan Ramon Roballo's Images via Canva

Key Stats for Circle Stock

  • Price Change Since IPO for CRCL stock: 68%
  • Current Share Price: $181
  • 52-Week High: $299
  • CRCL Stock Price Target: $204

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What Happened?

Circle Internet (CRCL) stock rose 2% following news that the stablecoin issuer has applied for a national trust bank charter with the Office of the Comptroller of the Currency (OCC).

If approved, Circle would establish the First National Digital Currency Bank, N.A., marking a significant step in the company’s mission to integrate stablecoins into the traditional financial system.

The bank charter application represents a strategic evolution for Circle, which has already experienced extraordinary success since its blockbuster IPO debut last month. CRCL stock priced its IPO at $31 per share, and it touched an all-time high of $299 a few days back.

Under the proposed charter, Circle would be able to act as custodian for its own USDC reserves and provide custody services for institutional clients’ digital assets, including tokenized representations of stocks and bonds on blockchain networks.

Unlike traditional banks, the license would not permit Circle to take cash deposits or make loans, focusing instead on digital asset custody and stablecoin infrastructure.

The application’s timing is notable, as Congress moves closer to passing the GENIUS Act, which would establish the first federal regulatory framework for stablecoins.

The Senate has already passed the legislation with bipartisan support, and the House is expected to follow suit this summer. President Trump is expected to sign it into law.

CRCL Stock Price Performance (TIKR)

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CEO Jeremy Allaire emphasized that obtaining a national trust charter aligns with emerging U.S. regulations and positions Circle to meet the requirements of the GENIUS Act.

The charter would enhance Circle’s credibility with institutional clients while maintaining its current reserve management structure. Assets would continue to be held at major banks, such as BNY Mellon, and managed by BlackRock.

What the Market Is Telling Us About CRCL Stock

The modest 2% gain in CRCL stock reflects investors’ measured optimism about Circle’s regulatory progress, especially given its already extraordinary valuation following its meteoric rise since the IPO.

At current prices, Circle trades at approximately 149x earnings, indicating that most of the positive news may already be priced in.

Wall Street analysts remain divided on Circle’s prospects. Firms such as Barclays, Bernstein, and Needham initiated coverage for CRCL stock with buy ratings and price targets exceeding $200, while JPMorgan and Goldman Sachs expressed caution regarding elevated valuations.

The bank charter application addresses some institutional concerns about regulatory clarity and operational infrastructure.

The move positions Circle as a pioneer in bridging traditional finance and digital assets. If successful, Circle would join Anchorage Digital as the only crypto companies with national trust bank charters, potentially creating competitive advantages as stablecoins gain mainstream adoption.

Investors see the charter application as validation of Circle’s “regulatory-first” approach and its positioning as the “Switzerland” of stablecoins.

The bank charter could accelerate Circle’s transformation from a crypto-native company to essential financial infrastructure for the digital economy.

However, CRCL stock faces ongoing risks from its extreme valuation and potential headwinds from declining interest rates, which could impact the reserve income model that generates 99% of Circle’s revenue from interest earned on USDC-backed assets.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!

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