Circle subsidiary Circle Internet Trust Company LLC has received a limited purpose trust charter from the New York State Department of Financial Services. Cointelegraph reported on July 31 that the charter allows the unit to exercise trustee powers and provide custody services under New York banking law.

A limited purpose trust charter does not grant the general authority to take deposits or make loans like a traditional bank, but it allows an institution to carry out trustee services. In addition to custody, a chartered institution can provide investment management, corporate trust services, transfer agent services and securities clearing. The New York State Department of Financial Services explained that some applicants obtain the charter for cryptocurrency-related activities.

Circle Chief Executive Jeremy Allaire (제러미 알레어) said in a press release that winning a New York trust charter has been a long-held goal for Circle because it brings regulatory clarity.

Circle issues the U.S. dollar-pegged stablecoin USDC. USDC has a market capitalization of $71.8 billion, making it the second-largest stablecoin after Tether's USDT and the fifth-largest cryptocurrency overall.