Track market-moving stories before they get noisy

The stablecoin market experienced a sharp contraction in June, with the total supply dropping by $7.7 billion to nearly $312 billion. This marked the largest single-month decline since the collapse of TerraUSD in May 2022, erasing more than $10 billion from the record highs reached the previous month.

Stablecoin Leaders Drive OutflowsAccording to data from DeFiLlama, the combined stablecoin supply hovered at approximately $312.23 billion at the end of June. Tether’s USDT, which remains the world’s leading stablecoin by market capitalization, accounted for $184.15 billion of the total. Circle’s USDC, the second-largest, held a supply of about $73.41 billion.

In June, the circulating supply of USDT fell from roughly $190 billion in May, resulting in a decrease of about $6 billion. USDC experienced a similar shift, dropping by approximately $7 billion since its March peak of $80 billion. These two tokens continued to account for the vast majority of global stablecoin liquidity.

The combined declines in USDT and USDC made up the majority of the contraction in the stablecoin market. While smaller regulated issuers reported growth during this period, their increases were not enough to counteract the drawdowns in the two largest stablecoins.

Paul Howard, a senior director at trading firm Wincent, described this reduction as a “small retreat,” emphasizing that the industry is still viewed as a long-term growth space. He also pointed out that the market’s current shrinkage remains well below the 26% contraction seen in 2022.

The events of 2022, including the collapse of the Terra protocol and insolvency filings from major crypto lenders and FTX, had triggered a much more severe market drawdown. In contrast, the recent decline did not lead to stablecoins breaking their dollar pegs or create a wider crisis in digital asset markets.

Market Impact and Shifting Investment TrendsStablecoins serve as primary settlement and quoting assets across both centralized and decentralized exchanges, underpinning much of the crypto trading ecosystem. Analysts have suggested that declining stablecoin supply may reflect greater redemption of tokens for bank dollars or an outflow of capital from the crypto industry.

Reduced supply can also decrease the purchasing power available for dollar-denominated assets such as Bitcoin and Ether. This, in turn, may negatively affect market liquidity during periods of selling pressure. Despite this, market observers note that the fall did not disrupt stablecoin pegs or create short-term instability among major tokens.

Trading activity for crypto investment products in the United States mirrored these outflows, as US-listed Bitcoin exchange-traded funds saw redemptions totaling more than $4 billion in June, marking their weakest monthly performance since launch.

Conversely, the market for tokenized real-world assets diverged from the general crypto trend. Blockchain-based tokenized assets recorded on-chain valuation exceeding $30 billion in 2026, spurred mainly by tokenized US Treasury products, investment funds, and private credit products.

CoinDesk Research reported that trading volumes in tokenized equities surged 145% in June, reaching a record $3.86 billion. This spike highlighted ongoing demand for blockchain-based financial products, even as traditional crypto liquidity remained subdued.

Mini dictionary: Tokenized real-world assets are digital representations of traditional financial instruments—such as bonds, equities, or real estate—issued and transacted on blockchain networks for greater accessibility and transparency.

StablecoinMay SupplyJune SupplyChangeUSDT$190 billion$184.15 billion– $6 billionUSDC$80 billion (March)$73.41 billion– $7 billionTotal stablecoinsRecord high (May 2026)$312.23 billion– $7.7 billion (June)Regulatory Landscape and OutlookRegulation of the stablecoin market is evolving alongside these shifts. The United States introduced the GENIUS Act, placing oversight of payment stablecoins at the federal level and introducing new standards related to customer identification, sanctions, and reserve requirements.

Despite the slowdown, both USDT and USDC maintained their dollar pegs, and stablecoin transaction volumes and underlying supply metrics held relatively steady compared with more volatile periods in the past.

Further reductions in stablecoin supply could signal additional liquidity leaving crypto markets in coming months. By contrast, a rebound would suggest the market is consolidating after a rapid expansion earlier in 2026. Market participants are closely watching upcoming data to determine whether capital is exiting crypto altogether or shifting among different issuers and blockchain-based products.

The current reduction, while the largest since 2022, has not resulted in a crisis or widespread loss of stablecoin pegs, suggesting relative stability even amid investor outflows.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

US pre-market news roundup: Intel plans to invest €5 billion to expand its Irish factory; storage and semiconductor equipment sectors fall across the board in pre-market trading.

Key pre-market news for U.S. stocks is as follows: 1. JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs will kick off Q2 earnings reports on Tuesday, while Morgan Stanley will release its results on Wednesday. Markets expect U.S. large banks’ investment banking and trading revenues to surge, driven by SpaceX’s IPO, rising M&A activity, and market volatility sparked by the Iran situation; 2. Trump claimed Iran always breaks agreements, so the U.S. will strike hard at Iran, take control of the strait, and likely dominate it in the future; 3. SK Hynix’s U.S. ADR trades at a 23.4% premium to its South Korean shares; 4. Semiconductor equipment and storage sectors fell across the board pre-market, with KLAC down 3.7%, SanDisk and Western Digital both dropping over 5%; 5. Spot gold and silver fell broadly, with gold down 1.32% and silver down 2.23%; 6. Crude oil markets fell broadly, with U.S. crude up 3.35% and Brent crude up 3.53%; 7. Strategy did not add to its Bitcoin holdings last week, selling 4.82 million units to raise $467 million; 8. Bitmine added 27,801 ETH to its holdings last week, bringing its total staked ETH to 4.917 million, with an estimated annual staking income of $242 million.

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South Korean stock market faces a margin trading crisis, with forced liquidations totaling 344.2 billion won in July.

According to data from the Korea Financial Investment Association, the recent sharp decline in South Korea's stock market has triggered accelerated deleveraging of margin trading positions. The total forced liquidation volume in July has reached 344.2 billion won, with the single-day forced liquidation amount on July 9 hitting 142.2 billion won. As forced liquidation data lags by two trading days, the clearing pressure from the nearly 9% plunge in the KOSPI on July 13 has not yet been fully reflected, and the market expects subsequent liquidation volumes to rise further. On July 13, South Korea's KOSPI index closed down 8.95%, triggering the Sidecar (seller order suspension mechanism) and Level 1 Circuit Breaker during intraday trading. The semiconductor sector plummeted, with SK Hynix falling 15.37%—its largest single-day drop in history—and Samsung Electronics down 10.7%. Meanwhile, South Korean retail investors' margin sizes, margin loan balances, and investor deposits have all continued to decline, with the market trapped in a deleveraging cycle of "stock price drop—forced liquidation—further decline".

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Trump and Iran deliver tough, tit-for-tat statements, with both sides refusing to back down on the Strait of Hormuz issue.

US President Donald Trump and an advisor to Iran’s Supreme Leader have successively made tough remarks on the Strait of Hormuz. Trump stated that the US will become the "guardian" and "guardian angel" of the Strait of Hormuz, claiming that the US has guarded the strait for free in the past and will recover its operational costs and compensate for the risks it has taken to maintain the strait’s security in the future. He also said that the US will control the Strait of Hormuz and "is very likely to dominate the strait" in the future, adding that every time Iran deploys drones, the US will strike back fiercely. In addition, Trump revealed that the US and Iran held 11-hour talks yesterday. The advisor to Iran’s Supreme Leader responded that no Iranian believes Iran should give up the Strait of Hormuz. Iran defends the Strait of Hormuz to avoid being forced to pay "ransom" for the passage of its own ships in the future. He emphasized that the strategic, security and economic status of the Strait of Hormuz is irreplaceable, and Iran will never back down on the issue of the Strait of Hormuz.

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HSK Chain launches Phase 3 of its HSK Staking campaign, upgrading the ecosystem's long-term incentive mechanism.

According to official announcements, HSK Chain’s Phase 3 staking campaign officially launched on July 13. This phase sets a maximum total staking cap and adopts a diversified incentive model, with participants eligible for corresponding expected ecosystem incentives per on-chain rules. Additionally, users who took part in previous staking phases and consistently supported ecosystem development will receive extra ecosystem subsidies based on their historical locked contributions, comprehensively enhancing on-chain participation benefits. It is understood that this staking campaign, while rewarding HSK holders and past participants, will further drive the long-term steady growth of the HSK Chain ecosystem. As on-chain developers, high-quality projects, and institutional-grade assets continue to onboard, this upgrade to the long-term incentive mechanism will serve as a core initiative for the ecosystem’s long-term development.

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BBC investigation finds Instagram still hosts ads for child sexual abuse content, Meta’s AI moderation mechanism faces renewed scrutiny

Despite Meta’s ongoing heavy investment in AI infrastructure, a new BBC investigation has found that Instagram is still serving users in India with advertisements containing child sexual abuse material (CSAM), and some of these ads are still deemed by the platform’s moderation system as “not violating community guidelines” even after being reported. The report states that a test account created by the BBC received around 30 CSAM-related ads within a week, without any prior searches for such content, and these ads directed users to Telegram channels to purchase the illegal material. The Indian government has ordered Meta to remove the relevant ads and explain within seven days why its moderation mechanism failed. The report notes that Meta’s 2025 ad revenue reached $201 billion, accounting for approximately 97% of its total revenue, while its AI infrastructure investment in the same period hit $72.2 billion. The company plans to raise its capital expenditure to between $125 billion and $145 billion in 2026. The article points out that Meta’s current controversies stem more from platform governance and commercial incentives rather than a lack of AI technical capabilities.

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Institutions: The crypto market continued deleveraging in Q2, with spot trading volume hitting its lowest level since Q3 2023.

According to FalconX’s latest market analysis, the crypto market sustained its deleveraging trend in the second quarter of 2026. Spot trading volume on major platforms fell to $1.6 trillion, down 25% quarter-over-quarter and 42% year-over-year, hitting its lowest level since the third quarter of 2023. Futures trading volume dropped to $9 trillion, a 12% quarter-over-quarter and 31% year-over-year decline. The report shows that by the end of Q2, the total open interest (OI) of futures across the market fell to $53.2 billion, a sharp pullback from the peak of $122.2 billion in October 2025, while trading turnover ratio decreased to 1.6x, reflecting a shift in the market from high-frequency speculation to long-term holding. On the capital flow front, Bitcoin spot ETFs recorded a net outflow of $4.9 billion in Q2, expanding the year-to-date cumulative net outflow to $5.4 billion. Total stablecoin supply shrank by $7.4 billion to $313.8 billion, marking the first contraction in recent quarters. FalconX notes that the current market deleveraging process is largely complete, with open interest stabilizing and trading volume showing signs of recovery in June. Looking ahead to the third quarter, the progress of the U.S. CLARITY Act legislation and ETF capital flows will be key catalysts shaping market trends.

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Circle Wins Final OCC Approval to Launch a National Trust Bank for Digital Asset Custody

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Intel will invest 5 billion euros to expand its factory in Ireland.

Intel (INTC.O) will invest 50 billion euros (approximately $57 billion) to expand its factory in Ireland, aiming to recapture its leading position in manufacturing amid the artificial intelligence boom. In a statement, Intel said the investment will boost production capacity at its Leixlip campus outside Dublin, as part of the company’s plan to increase output of data center processors. The expansion will enhance manufacturing capabilities for products including its flagship Xeon server processors, while advancing research and development activities. Intel Executive Vice President Naga Chandrasekaran noted in a statement that the move is also part of the company’s plan to improve delivery capacity for its foundry business. Intel’s foundry arm, which manufactures chips for other tech companies, is a core component of its revitalization strategy, designed to strengthen its competitiveness against rivals such as TSMC.

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Trump: The United States may take charge of managing the Strait of Hormuz in the future.

US President Trump posted that he may "operate" the Strait of Hormuz in the future, stating that if the US takes the lead in managing the Strait of Hormuz, the US will receive compensation. "We will become the guardians of the Strait of Hormuz."

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US media: Trump's so-called "standing retaliation order against Iran" cannot take effect automatically after his death.

According to the Associated Press, in response to recent remarks by former U.S. President Donald Trump that he has ordered the U.S. military to launch large-scale strikes on Iran if he is assassinated by Tehran, there is no so-called "dead man’s switch" mechanism in U.S. law that automatically triggers military retaliation upon the president’s death. Under the 25th Amendment to the U.S. Constitution and the Presidential Succession Act, if the president dies, Vice President JD Vance will immediately assume the presidency and the role of commander-in-chief, with military command authority transferring simultaneously. The successor president will independently decide whether to execute, modify, or cancel the relevant orders of the predecessor. Experts note that while the U.S. has established government continuity and nuclear contingency plans, it has never allowed the military to automatically launch retaliatory actions based on preset orders after the president’s death.

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Bitmine increased its holdings of 27,801 ETH last week, pushing its total staked amount to 4.917 million ETH, with projected annual staking revenue of $242 million.

Bitmine announced it purchased an additional 27,801 ETH over the past week, and will maintain its steady accumulation pace that has been in place since 2026. The company expects to achieve its so-called "Alchemy of 5%" target this year. As of July 12, Bitmine holds a total of 5.77 million ETH, of which 4.917 million ETH (accounting for 85% of its holdings) has been staked. At an ETH price of $1,820, the total value of its ETH holdings is approximately $9 billion. Based on an annual staking yield of 2.70%, the company’s annual staking revenue is around $242 million; if all its ETH is staked, annual staking rewards would reach $284 million. Additionally, Bitmine said it launched MAVAN (Made in American Validator Network), an institutional-grade Ethereum staking platform, this year, which will be opened to institutional investors, custodian institutions, and ecosystem partners. Bitmine also noted that it is currently the world’s largest ETH reserve institution, and ranks second globally in terms of crypto asset reserve size, trailing only Strategy, which holds 843,775 BTC. The company further stated that the GENIUS Act and the U.S. SEC’s Project Crypto will drive transformation in digital asset financial infrastructure, an impact comparable to that of the end of the 1971 Bretton Woods system on Wall Street’s modernization.

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Hyundai Motor completes enterprise-level USDT cross-border settlement pilot, with cross-border fund transfers finished in just 7 minutes.

Tether announced that Hyundai Motor America and Hyundai Motor Mexico have completed an enterprise cross-border settlement proof of concept (POC) on the Avalanche network via Axiym, marking Tether’s first enterprise cross-border fund settlement pilot. During the pilot, Hyundai Motor America converted $20,000 into USDT, transferred the funds cross-border to Hyundai Motor Mexico, which then converted the amount back to USD. The entire cross-border transfer and verification process took an average of just 7 minutes, a notable acceleration compared to traditional bank cross-border remittances, which typically take 3 to 4 hours or longer. Tether noted that the pilot demonstrates stablecoins’ application potential in enterprise cross-border payments, fund management, and global fund allocation. In the next phase, the project will explore additional cross-border payment channels and local currency settlement scenarios, further evaluating stablecoins’ use in enterprise treasury management.

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Trump: I am taking over the Strait of Hormuz, Iran got nothing at all.

US President Donald Trump said, “We are taking over the Strait of Hormuz. Iran has nothing right now. Iran is not getting anything.”

8 minutes ago

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Major crypto exchange OKX has sent out a notice to users of USDC on the Solana blockchain, announcing a temporary suspension of deposit and withdrawal services due to scheduled wallet maintenance.

OKX said the temporary pause is due to wallet maintenance and will take place in the next 24 hours, on July 14.

由于钱包维护，我们将于7月14日14:30 (UTC+8) 暂停 USDC 在 Solana 网络的充提服务，待维护完成后恢复。

相关代币的交易不受影响，请勿在钱包维护期间进行 USDC 的充提操作，以免造成资金损失，感谢您的理解与支持~

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— OKX中文 (@okxchinese) July 13, 2026 Due to wallet maintenance, OKX said it will suspend USDC deposit and withdrawal services on the Solana network on July 14 at 14:30 (UTC+8), and resume them after the maintenance is completed.

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The exchange added that trading services will continue to operate normally as trading of related tokens will not be affected. Users are, however, urged to refrain from performing USDC deposits or withdrawals during the wallet maintenance period to avoid potential fund losses.

USDC on Solana is native to the Solana blockchain and can be swapped across chains. Circle has just issued an additional 250 million USDC on the Solana network.

Solana newsIn a recent milestone, Solana has crossed epoch 1,000, marking the finalization of 432,000 slots on Solana and highlighting over 5.5 years of Solana.

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1,000 epochs also marked 120.5 billion total non-vote transactions, $4.3 trillion traded on Solana DEXes, $193.5 trillion in stablecoins transferred on Solana rails, 2 years and 154 days of 100% availability, multiple unicorns building on Solana, 78,000 unique developers, and over 7.4 million commits on Git repos.

As reported by Wu Blockchain, Japanese financial giant SBI Holdings and the Solana Foundation have announced a strategic partnership to develop Japan-originated onchain financial markets.

As part of the initiative, the Solana Foundation will join SBI R3 Japan, which is set to be renamed SBI Solana Global, alongside SBI and Sumitomo Mitsui Financial Group (SMFG), one of Japan's three megabanks.  

The partnership will focus on JPY stablecoins, tokenized real-world assets (RWAs) including bonds, funds, and real estate, cross-border payment infrastructure, and institutional onchain financial services. SBI said the initiative aims to connect Japan's regulated financial markets with global blockchain liquidity and position Japan as a hub for onchain finance in Asia.

https://www.cryptoninjas.net/news/circle-mints-250-million-in-usdc-on-solana-a-major-boost-for-defi-liquidity/

Circle has minted an additional $250 million of USDC on the Solana blockchain, according to a report by @martypartymusic. This issuance is part of a broader trend in 2026, where USDC minting on Solana has reached approximately $64.25 billion to $64.78 billion. The increased issuance suggests sustained demand for dollar liquidity on Solana, reinforcing its competitive position as a key settlement layer for stablecoin transactions and decentralized finance (DeFi) activities. Market participants appear to interpret this development as supportive of Solana’s price prospects, with the additional liquidity potentially influencing Solana’s ability to reach higher price targets in July.

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Key Takeaways The $250 million USDC issuance on Solana appears to suggest continued demand for stablecoin liquidity in the network. Markets seem to view the increased liquidity as consistent with a positive outlook for Solana’s price, possibly affecting its potential to reach $90 in July. The cumulative USDC issuance on Solana for 2026 highlights its growing role in stablecoin and DeFi ecosystems. What to Watch Observers are monitoring the impact of increased USDC liquidity on Solana’s price trajectory, particularly in relation to its potential to reach the $90 mark in July. Key indicators include market responses to liquidity changes and any significant price movements. Additionally, developments in the broader crypto market and macroeconomic factors could influence Solana’s price dynamics, affecting the likelihood of reaching set targets.

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Term Structure

Contract Odds Δ since publish Volume 24h August 1 2026 20% — — View market → August 1 2026 0.5% — — View market → August 1 2026 0.1% — — View market → August 1 2026 2.4% — — View market → August 1 2026 0.9% — — View market → August 1 2026 0.8% — — View market → August 1 2026 4% — — View market → August 1 2026 0.8% — — View market → August 1 2026 13% — — View market → August 1 2026 0.1% — — View market → August 1 2026 1.8% — — View market → August 1 2026 0.1% — — View market → August 1 2026 48% — — View market →

The stablecoin market has lost about $10 billion since reaching a record high in May 2026. Total supply fell by $7.7 billion during June to about $312 billion, marking the largest monthly decline in dollar terms since the TerraUSD collapse in May 2022. The decrease equaled roughly 2.4% for June and about 3% from the May peak. 

Summary

Stablecoin supply lost $10 billion since May as USDT and USDC redemptions reduced crypto liquidity. June recorded the largest monthly dollar decline since Terra, but the market contracted only 3%. Transaction volumes remained strong while tokenized assets expanded, showing blockchain finance activity continued despite redemptions. Current DefiLlama data places the market near $312.23 billion. The dashboard shows Tether’s USDT at about $184.15 billion and Circle’s USDC at roughly $73.41 billion. USDT still controls close to 59% of the market, leaving the sector heavily dependent on its two largest dollar-backed tokens.

USDT and USDC lead the supply reduction USDT fell from about $190 billion in May, cutting roughly $6 billion from its circulating value. USDC declined from a March peak near $80 billion, losing almost $7 billion over four months. Together, those changes account for most of the retreat, although smaller regulated issuers continued expanding during the same period. 

Paul Howard, senior director at trading firm Wincent, described the decline as “a relatively small pullback in what we believe is a long-term growth market.” The current drawdown remains far below the 26% stablecoin contraction recorded across the 2022 bear market. That earlier decline followed the Terra failure, lender collapses, and the failure of FTX.

Stablecoin Market Loses $10B Since May in Biggest Retreat Since the Terra Crash

According to CoinDesk, stablecoin market capitalization has fallen by roughly $10 billion from its May peak, including a $7.7 billion drop in June—the largest monthly decline in dollar terms since… pic.twitter.com/RafAPoaerJ

— Wu Blockchain (@WuBlockchain) July 12, 2026 Lower supply points to thinner crypto liquidity Traders use stablecoins as settlement assets and quote currencies across exchanges and decentralized markets. A falling supply can show that users redeemed tokens for bank dollars or moved capital outside crypto. It can also reduce the amount of dollar-linked buying power available for Bitcoin, Ether, and other digital assets.

The reduction arrived during a weak month for crypto investment products.Crypto.news reported that U.S. spot Bitcoin exchange-traded funds lost more than $4 billion in June, their worst monthly outflow since launch. The parallel declines show that institutional fund demand and on-chain dollar liquidity both weakened as digital asset prices remained under pressure.

Activity did not fall at the same pace as supply. The adjusted stablecoin transaction volume reached a record $1.78 trillion in June. USDC processed about $1.21 trillion, while USDT handled $573 billion. USDT still recorded more individual transfers, showing that fewer tokens can continue supporting heavy payment and trading activity.

Tokenized assets grow while stablecoins retreat Tokenized real-world assets moved in the opposite direction. However, their on-chain value crossed $30 billion during 2026, led by tokenized Treasury products, funds, and private credit. CoinDesk Research also recorded a 145% rise in tokenized equity volume during June to a record $3.86 billion.

Regulation and new issuers continue reshaping the stablecoin market. The U.S. GENIUS Act created a federal framework for payment stablecoins, while regulators are drafting customer identification, sanctions, and reserve rules. Crypto.news has also tracked new reserve products from Fidelity and State Street designed for regulated issuers.

The latest supply figures point to a pause in market expansion rather than a Terra-style collapse. USDT and USDC remain near their dollar pegs, transaction activity remains high, and the total market retains most of its recent growth. Further monthly contractions would provide clearer evidence that crypto liquidity is leaving the system rather than moving between issuers or on-chain products.

Investors will now watch July issuance, redemption data, exchange volumes, and ETF flows for signs that demand is returning or weakening further.

PANews, July 12 news, according to CoinDesk report, the stablecoin market in June saw its largest pullback in recent years, with total market cap shrinking by $7.7 billion that month, the biggest single-month decline since the Terra-Luna collapse in May 2022. Since the peak in May, the stablecoin market has cumulatively shrunk by about $10 billion, with a total market cap decline of about 3%. Among them, two major stablecoin issuers were the main drivers of this pullback. The market cap of USDT issued by Tether fell from about $190 billion in May to $184 billion, a decrease of about $6 billion; USDC issued by Circle retreated from a peak of nearly $80 billion in March 2026 to about $73 billion, a contraction of about $7 billion.

However, compared with the cumulative decline of over 26% in the stablecoin market during the crypto winter of 2022, the magnitude of this round of adjustment is still relatively mild. Data shows that from March 2022 to September 2023, the total market cap of major stablecoins fell from about $166 billion to $122 billion, during which the TerraUSD crash, FTX bankruptcy, and failures of multiple crypto lending institutions severely hit market liquidity.

Despite overall market pressure, the competitive landscape of the stablecoin industry is changing. As regulatory developments like the U.S. GENIUS Act drive the expansion of stablecoins into payment and settlement scenarios, more issuers are entering the fray. The circulation of USDG, issued by Paxos and supported by institutions such as Robinhood, has exceeded $3.2 billion, while the circulation of USDGO launched by Anchorage Digital and Hong Kong's OSL Group has nearly doubled to $900 million.

Wall Street institutions remain optimistic about the long-term prospects of stablecoins. Citi previously estimated that the global stablecoin market size would reach $1.9 trillion under a base-case scenario and $4 trillion under an optimistic scenario by 2030; Standard Chartered Bank predicts that the stablecoin market size will grow to $2 trillion by 2028. Analysts point out that stablecoin supply growth has historically been one of the important drivers of a crypto bull market, while the current overall supply contraction means reduced new on-chain liquidity. Without support from new capital demand, the difficulty for crypto assets to sustain their rise may increase.

TL;DR Stablecoin market capitalization fell by about $10 billion from its May peak, with June recording the biggest monthly dollar decline since the 2022 Terra crash. USDT’s supply dropped from around $190 billion to $184 billion, while USDC declined to approximately $73 billion, leading the overall contraction. Despite the headline decline, the stablecoin market shrank by only about 3%, indicating that most of the sector’s recent growth remains intact. Even as stablecoin supply declined, tokenized real-world assets reached new highs. The stablecoin market has recorded its largest monthly contraction since the collapse of TerraUSD in 2022, with total market capitalization falling by roughly $10 billion from its May peak. 

While the decline has raised concerns about liquidity across the digital asset market, analysts note that the overall contraction remains relatively modest at around 3%, suggesting the sector continues to retain most of the gains accumulated over the past year. 

The retreat comes as crypto markets navigate weaker investor sentiment, persistent ETF outflows, and heightened macroeconomic uncertainty that has weighed on demand for digital assets.

Tether’s USDT, the world’s largest stablecoin, accounted for much of the decline, with its circulating supply falling from roughly $190 billion to $184 billion. USDC also contracted, dropping to around $73 billion during the same period. Together, the two dominant dollar-backed stablecoins represent the overwhelming majority of on-chain liquidity used across centralized and decentralized crypto markets. 

Stablecoin Data | Source: X Although the market lost billions of dollars in capitalization, the overall decline represented only a small percentage of the sector’s total value, highlighting that stablecoin adoption remains significantly higher than it was before the recent expansion cycle.

Stablecoin Market Liquidity Concerns Return to The Spotlight Stablecoins are widely viewed as the primary source of liquidity within the cryptocurrency ecosystem because they are commonly used to enter and exit positions without converting back into traditional fiat currencies.

A shrinking stablecoin supply is often interpreted as a sign that capital is leaving digital asset markets or remaining on the sidelines. The combined supply of USDT and USDC had been falling since early May, reflecting weaker on-chain liquidity during a period marked by declining crypto prices and softer institutional inflows. 

The reduction also coincided with several weeks of net outflows from U.S. spot Bitcoin exchange-traded funds, reinforcing concerns that investor demand cooled during June.

Despite the decline in supply, trading activity remained relatively resilient. Stablecoin trading volume on centralized exchanges rose 10.8% in June to approximately $981 billion, marking the first monthly increase in five months. The increase suggests that stablecoins continue to play a central role in crypto trading even as total circulating supply contracts. 

Tokenized Assets Continue Expanding While stablecoins experienced their sharpest pullback in years, tokenized real-world assets continued moving in the opposite direction.

Recent data found that the total market capitalization of tokenized assets climbed to a record $30.1 billion in June, driven by continued growth in tokenized U.S. Treasuries and public equities. Tokenized Treasury products alone expanded to approximately $17 billion, while tokenized equity trading volumes surged to fresh highs during the month.

The contrasting trends suggest that although short-term liquidity has weakened, institutional interest in blockchain-based financial infrastructure continues to grow.

The broader stablecoin sector is also benefiting from increasing regulatory clarity. Recent developments include new licensing approvals for major issuers and expanding institutional support for dollar-backed digital assets. 

Circle, the issuer of USDC, recently received approval to operate as a federally regulated trust bank in the United States, allowing it to directly oversee reserves backing its stablecoin as it now dominates over USDT. The move reflects growing integration between traditional finance and digital asset infrastructure despite the recent market slowdown. 

Market participants will now be watching whether stablecoin issuance resumes in the coming months. A return to supply growth would likely signal renewed capital entering the crypto ecosystem, while continued contraction could point to a more cautious investment environment during the second half of the year.

Circle, the company behind the USDC stablecoin, paid Coinbase $908 million in distribution costs and revenue sharing during 2024. That figure represents roughly 54% of Circle’s total revenue for the year, making Coinbase less of a distribution partner and more of a landlord collecting majority rent.

The arrangement, formalized through a Collaboration Agreement that took effect on August 18, 2023, is approaching its first major renewal window in August 2026.

The economics of a lopsided partnership Coinbase earns 100% of the reserve interest generated on USDC held directly on its platform. For USDC held anywhere else in the world, Coinbase still collects 50% of that interest income.

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For Coinbase, stablecoin-related revenue is projected to reach approximately $1.35 billion in 2025. USDC-related activities accounted for roughly 13.8% of Coinbase’s total revenue in 2024, a figure large enough that any disruption to the partnership would show up clearly in quarterly earnings.

How we got here The current arrangement replaced a previous structure called the Centre Consortium, a joint venture that both companies operated together. When they restructured in August 2023, Circle took sole governance and issuance control of USDC.

As part of that restructuring, Coinbase also took an equity stake in Circle. The Collaboration Agreement runs on an initial three-year term through August 2026, with automatic three-year renewals that depend on performance metrics.

Coinbase’s wandering eye In June 2026, Coinbase endorsed Open USD, a rival stablecoin project. The market reaction was swift: Circle’s stock price dropped more than 17%.

What this means for investors The August 2026 renewal window is the most important date on the calendar for anyone with exposure to either company or to USDC itself. A renegotiation that shifts more revenue toward Circle would hurt Coinbase’s stablecoin income, while a deal that maintains the current structure keeps Circle’s margins under pressure.

For Coinbase investors, the $1.35 billion in projected stablecoin revenue for 2025 represents a substantial revenue stream. Stablecoin demand tends to persist even during bear markets, since traders use stablecoins to park capital, making this revenue line more resilient than Coinbase’s trading fee income.

If Coinbase actively promotes rival stablecoins on its platform, the 50% revenue share on off-platform USDC becomes less valuable as total USDC circulation potentially shrinks. Circle would then face the worst of both worlds: paying high distribution costs on a shrinking asset base.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Kraken is rebuilding its app around agentic trading, a move the crypto exchange believes could redefine competition among digital asset platforms.

The technology uses AI agents to monitor markets, identify opportunities and provide portfolio guidance based on user goals and risk preferences, Kraken told CNBC, according to a Friday report.

AI Agents Guide Trades, Users Keep Final SayKamo Asatryan, Kraken’s chief data officer, said AI could help everyday investors access capabilities traditionally used by professional traders. "AI is going to help everyday people respond to market conditions the way our most active traders respond," Asatryan said. "We see even in down markets that our pro traders are highly active, they engage with the platform, they continue to trade."

Asatryan described the goal as making Kraken feel like talking to a “well-informed best friend” who understands a user’s goals and can guide them without requiring them to become expert traders themselves.

According to the report, Kraken’s redesigned app will use AI to understand users’ financial goals, risk tolerance and preferences before generating portfolio suggestions. The platform will offer AI-generated insights, portfolio updates, and recommendations, but customers will need to approve trades before they are executed.

Industry Rivals Deepen Their AI PushIn June, Coinbase also advanced the broader AI investing trend by introducing an AI investment advisor that analyzes portfolios and account history to provide personalized guidance and suggest potential investment ideas.

Kraken’s Parent Company Expands on Multiple FrontsKraken’s AI push comes as parent company Payward raises capital at a $20 billion valuation while expanding beyond crypto trading into payments, derivatives and stablecoin infrastructure, as it moves toward a planned IPO.

Kraken’s expansion also comes amid broader regulatory developments for the company, including an arbitration dispute with former auditor Mazars USA that resulted in a $22 million award in Kraken’s favor.

Founded in 2011, Kraken has historically served institutions, trading firms, professional traders and active leverage traders.

Benzinga’s Take: The developments show how crypto exchanges are expanding their use of AI beyond traditional trading services, as companies explore tools aimed at improving user engagement and financial decision-making.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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South Korean automaker Hyundai is doubling down on stablecoins for internal transfers between its subsidiaries. 

During its testing stage, the automaker saw faster transfers between U.S and Mexico subsidiaries. Instead of the typical 4 hours or more for traditional interbank transfer methods, the firm said it took about 7 minutes to transfer Tether’s USDT between its two offices. 

Commenting on the test, Hyundai hailed stablecoin transfers as offering “overwhelming speed and superior stability” to conventional methods. The pilot involved Hyundai Motors Group-owned credit card firm Hyundai Card, Avalanche, Tether and payment integrator Axiym.

Source: Hyundai For his part, Paolo Ardoino, Tether CEO, billed the move as an impressive “real world adoption of USDT.” Bo Hines, CEO of Tether U.S., scored the Hyundai move as “what the future of finance looks like.”

At the end of July, the automaker will conduct a similar test with Circle’s USDC and Visa for EU transfers. 

For Hyundai, this was a foundation for utilizing and scaling stablecoins for remittances between overseas subsidiaries. But its credit card division plans to go beyond internal transfers. The firm noted, 

Going forward, we will explore and continuously expand various businesses utilizing stablecoins, including international remittance and payment infrastructure.

This signals growing enterprise stablecoin adoption.

Stablecoin adoption wars: USDT vs. USDC Stablecoins have graduated from a crypto experiment to a tool that addresses real global pain points: US dollar accessibility and cheaper, faster cross-border transfers. 

Although Euro-based stablecoins have also seen significant growth, they still have a smaller market share compared to US Dollar-based alternatives. 

But the USD-based segment has become increasingly competitive. The recent activation of the MiCA regime saw USDC gain significant ground over Tether’s USDT. 

In fact, USDC currently accounts for 63% of annual stablecoin transaction volume (about $6T out of the total $9T). That was more than double Tether’s USDT volume of $3.3T (36%). 

Source: Visa  Worth pointing out that this was the first time USDC has led in annual stablecoin transfer volume. Whether the MiCA will allow USDC to maintain its dominance by the end of the year remains to be seen. 

Final Summary Hyundai plans to scale internal stablecoin transfers using USDC and USDT  USDC dominates 2026 stablecoin transfer volume at 63%, underscoring significant usage

PANews reported on July 11, citing Cointelegraph, that the Hedera-based lending protocol Bonzo Finance suffered an oracle attack, losing approximately $9 million. The attacker used collateral after the SAUCE token price was abnormally inflated to borrow assets far exceeding their actual value from the protocol.

Bonzo’s preliminary incident report shows that the attacker deposited only 250 SAUCE (worth just a few dollars), then submitted a price update that artificially inflated the token’s price by about 12 orders of magnitude. Subsequently, the address borrowed $6.63 million in USDC and 34.5 million wrapped HBAR (wHBAR) from the lending pool. It is reported that the incident originated from a vulnerability in the on-chain oracle validator of the oracle service provider Supra, which erroneously accepted a SAUCE price data with a zeroed-out signature. Supra has confirmed the issue and completed a fix. Bonzo emphasized that this attack did not stem from any vulnerability in Bonzo’s smart contracts or the underlying Hedera network.

Data shows that the second quarter of 2026 has become the quarter with the most attacks in crypto history, with a total of 83 security incidents resulting in cumulative losses of about $755 million. Among them, cross-chain bridge attacks caused approximately $351 million in losses, while admin key leaks and fake token price manipulation accounted for 37% of the quarterly losses.

Affected by ongoing security incidents, the DeFi sector’s total value locked (TVL) has fallen from around $115 billion in January this year to over $70 billion in June, a cumulative decline of 39%. CryptoRank data shows that the industry has experienced 121 security incidents so far this year, with cumulative losses of about $942 million. Persistent security issues may further weaken user confidence and accelerate capital outflows.

It is worth noting that in February this year, the Stellar-based lending protocol YieldBlox also experienced a similar incident. The attacker stole around $10 million in assets from its lending pool by manipulating the USTRY collateral price path.

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TLDR Table of Contents

TLDRFederal Charter Places Trust Bank Under OCC OversightCustody Services Will Begin With Affiliated OperationsCrypto Firms Continue Seeking Federal Banking StatusGet 3 Free Stock Ebooks Circle received final OCC approval to establish Circle National Trust. The bank will provide fiduciary digital asset custody services. It cannot accept consumer deposits or issue traditional loans. The trust bank may later serve selected regulated institutions. The charter could support future USDC reserve management under OCC oversight. Circle has received final OCC approval to establish a federally regulated national trust bank in the United States. The decision expands Circle’s regulated infrastructure as crypto companies seek federal charters and custody permissions. The new bank will provide fiduciary digital asset custody but cannot accept consumer deposits or issue commercial loans.

Federal Charter Places Trust Bank Under OCC Oversight The institution will operate as Circle National Trust and remain subject to direct federal supervision. National trust banks can provide custody and fiduciary services under federal rules, but they differ from commercial banks. They cannot offer standard deposit accounts, extend consumer credit, or conduct traditional lending activities.

Circle applied for the charter in June 2025 and received conditional approval six months later. Final authorization allows the company to complete preparations before the trust bank begins approved operations. The OCC will oversee governance, risk controls, compliance systems, and other requirements under the approved business plan.

Circle CEO Jeremy Allaire described the approval as a major step for blockchain infrastructure within the financial system. “Federal oversight of our trust bank sets a new standard for transparency, governance, and scale for Circle’s infrastructure,” Allaire said. The statement linked the charter to stronger federal supervision of digital asset custody and related services.

Custody Services Will Begin With Affiliated Operations Circle National Trust will initially provide fiduciary custody services for the company and its affiliated businesses. The approved plan also permits later services for a limited number of regulated institutional customers. Potential customers include banks and other financial institutions that require federally supervised digital asset custody.

The charter also creates a route for Circle to manage reserves supporting USDC under OCC oversight. However, the company said reserve management remains a future capability rather than an immediate banking service. The trust bank will follow its approved plan as it develops additional functions and compliance systems.

The company issues USDC, the second-largest dollar-pegged stablecoin by reported circulation. USDC has about $73.2 billion in circulation, while Tether’s USDT holds roughly $184.1 billion. The bank approval could support custody and reserve operations tied to the issuer’s regulated infrastructure.

Crypto Firms Continue Seeking Federal Banking Status Several crypto companies have pursued federal charters, trust licenses, and custody approvals during the industry’s regulatory expansion. Kraken has sought federal permissions, while Crypto.com secured an OCC license for regulated crypto custody in February. These applications reflect a broader shift toward federal supervision for digital asset services.

BitGo, Ripple, Paxos, and Fidelity Digital Assets received similar conditional OCC approvals in December. Those approvals allow the firms to continue meeting requirements before launching federally supervised trust operations. The company now joins that group with final approval for its national trust bank.

The approval gives the company a federally supervised entity for custody and possible future reserve management. The bank will open under OCC oversight and operate within the limits of its approved business plan. Circle has therefore completed a key regulatory step in its broader U.S. crypto expansion.

Circle secured final OCC approval to establish a federally regulated national trust bank in the U.S. CRCL shares climbed nearly 12% as investors reacted to Circle’s latest federal regulatory milestone. The bank can provide digital asset custody and may later oversee reserve assets supporting USDC circulation. USDC generated 94% of Circle’s first-quarter revenue through reserve income tied to its circulation. Circle Internet Group has secured final approval from the U.S. Office of the Comptroller of the Currency to establish a federally regulated national trust bank. The decision marks the company’s regulatory milestone since its 2025 public listing and triggered a rise in its shares.

CRCL stock traded near $70.42 in premarket trading, gaining about 11.84% after the announcement. The move reflected investor attention on the company’s role in regulated digital asset infrastructure and the importance of USDC to its earnings.

Federal Charter Expands Circle’s Institutional Custody Reach The new institution will be incorporated as First National Digital Currency Bank, N.A., while operating under the name Circle National Trust. It will sit under OCC supervision once operations begin.

Circle has received final OCC approval to establish First National Digital Currency Bank, N.A., a national trust bank operating as Circle National Trust.

A major U.S. regulatory milestone that strengthens USDC infrastructure through federally regulated custody, with reserve… pic.twitter.com/GtThvFV5aW

— Circle (@circle) July 10, 2026

The business plan allows the institution to provide fiduciary digital asset custody services. Initially, those services will support the company and its affiliates.

Over time, the bank may serve institutional clients, including banks, financial institutions, and regulated derivatives organizations. Any expansion will depend on market demand and the approved operating framework.

The charter also creates a path for oversight of the infrastructure supporting USDC. Reserve management appears as a capability rather than an immediate service.

That distinction means the institution could eventually oversee assets backing USDC within a federal regulatory structure. However, the approval does not indicate that reserve management will begin immediately.

Chief Executive Jeremy Allaire said federal oversight would strengthen transparency, governance, and operational scale. He also said the structure could increase institutional confidence in public blockchain-based financial services.

The approval completes a process that began with an application filed on June 30, 2025. The regulator granted conditional approval in December after reviewing custody, collateral trustee, and reserve-management plans.

Circle was among five digital asset companies receiving conditional National Trust Bank approvals that month. The group reflected broader efforts to place crypto custody and payment infrastructure under federal supervision.

USDC Reserve Income Explains the Market Reaction The charter does not turn the institution into a conventional commercial bank. National trust banks generally focus on custody and fiduciary services rather than retail deposits or lending.

Most institutions in this category also lack Federal Deposit Insurance Corporation coverage. Therefore, the business model remains centered on regulated asset safekeeping and trust-related functions.

The market response also reflected the central role of USDC in Circle’s financial performance. The company reported $77 billion in circulation at the end of the first quarter of 2026.

During that quarter, reserve income rose 17% from a year earlier to $653 million. SEC filings showed that reserve income produced 94% of total revenue.

Those figures demonstrate how closely the company’s earnings remain linked to USDC circulation and interest generated by reserve assets. USDC circulation stood near $73 billion on July 6.

Placing custody, and potentially reserve management, under direct federal supervision could reduce uncertainty around infrastructure supporting tens of billions of dollars in tokenized value.

The charter, nevertheless, does not guarantee immediate revenue growth. Instead, it gives the company a federally supervised platform for institutional custody, regulated settlement, and closer integration with the U.S. financial system.

What The OCC Approval Actually UnlocksThe charter places Circle National Trust under direct federal oversight by the OCC, the same primary regulator that oversees national banks. 

At launch, the bank offers fiduciary digital asset custody services for Circle and its affiliates.

Depending on demand, it may eventually extend custody to a limited number of institutional customers, focusing on banks and other regulated financial institutions.

USDC Reserve management was the original goal of Circle’s June 2025 application, but that capability comes later rather than at launch. 

Once it moves under federal oversight, it would bring Circle’s reserve operations into the same regulatory framework as traditional national banks, adding another layer of transparency to the $73.2 billion stablecoin.

“OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the U.S. financial system,” said Circle CEO Jeremy Allaire. 

The charter does not permit Circle to accept cash deposits or make loans, but it does allow the firm to hold customer assets under strict fiduciary standards.

Circle Joins A Growing Queue Of Crypto Firms Winning Federal ChartersCircle filed its application in June 2025 and received conditional approval in December alongside Ripple (CRYPTO: XRP), BitGo, Fidelity Digital Assets, and Paxos. 

BitGo received full OCC approval in December, and Anchorage Digital Bank had been the only crypto firm with a national trust charter before that, granted back in 2021.

However, Senator Elizabeth Warren (D-Mass.) pushed back on the OCC’s approach, arguing that some companies receiving national trust charters do not qualify under the National Bank Act.

ARK Invest Bought $13.7M In CRCL The Day Before The AnnouncementCathie Wood’s ARK Invest purchased $13.7 million worth of Circle shares on Thursday, the session before Friday’s announcement.

At the same time, the firm sold $9.8 million worth of Robinhood (NASDAQ:HOOD) shares.

CRCL’s Chart Shows Improving Momentum But Heavy Overhead SupplyCRCL sits 3% below its 20-day SMA at $72.92 and roughly 24% to 26% below the 50-day, 100-day, and 200-day SMAs all clustered in the low-to-mid $90s. 

A death cross formed in June when the 50-day SMA crossed below the 200-day, keeping the longer-term trend heavy.

Key resistance sits at $77 before the stock gets anywhere close to reclaiming its moving averages. 

Support at $65 marks the recent zone where buyers stepped in after July’s weakness.

Image: Shutterstock

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The stablecoin issuer received a charter for First National Digital Currency Bank, allowing it to custody digital assets and, eventually, hold USDC reserves under direct federal supervision. Shares rose more than 10%.

Circle Internet Group (NYSE: CRCL) said on July 10 that it received final approval from the U.S. Office of the Comptroller of the Currency to establish a national trust bank, a step that brings the infrastructure behind USDC under direct federal banking supervision.

The new entity, chartered as First National Digital Currency Bank, N.A. and operating under the name Circle National Trust, will provide custody services for digital assets. According to the business plan approved by the OCC, the bank is also designed to eventually manage the reserves backing USDC, the second-largest stablecoin by market capitalization.

"OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the U.S. financial system," Circle Co-Founder, Chairman and CEO Jeremy Allaire said in a statement. "Federal oversight of our trust bank sets a new standard for transparency, governance, and scale for Circle's infrastructure."

The trust bank charter arrives as more traditional financial institutions integrate USDC. BNY, the world's largest custodian bank, recently added USDC to its institutional digital asset custody platform.

In his post, Allaire framed the approval as part of building "a new fundamental money layer for the internet" spanning use cases from AI agents transacting with one another to wholesale transfers between large financial institutions. "We are thrilled to be the first of a new cohort of firms establishing this kind of banking infrastructure," he wrote.

What the Charter AllowsUpon opening, Circle National Trust will offer fiduciary digital asset custody services for Circle and its affiliates, according to the press release. The OCC-approved business plan states that, "depending on demand, FNDCB may eventually offer its digital asset custody service to a limited number of institutional customers directly, focusing on banks and other financial institutions, such as regulated derivatives organizations."

The charter is also structured to enable future management of the USDC reserve. Circle described reserve management as a "planned" future capability rather than a service available at launch. The cash and short-term U.S. Treasuries backing USDC are currently held with third-party banking partners; the charter would allow Circle to bring those reserves under its own federally regulated custody over time.

The approval places Circle National Trust under direct oversight by the OCC, the primary regulator for national banks and national trust banks.

A Multi-Year Regulatory PathCircle submitted its application to the OCC on June 30, 2025, and received conditional approval in December 2025, according to the company. The Defiant reported on the initial filing when Circle applied for the trust bank license last year.

The charter follows the passage of the GENIUS Act, the federal stablecoin law that establishes a framework for payment stablecoin issuers. The OCC issued a notice of proposed rulemaking to implement the statute in February 2026, and the law's requirements take effect on Jan. 18, 2027. In his post on X, Allaire wrote that as the GENIUS Act "approaches full implementation in early 2027," Circle is positioned "to bring critical components of USDC's operation and reserves into this structure."

Circle is not the only crypto firm pursuing a national trust charter. The OCC has issued conditional approvals to Ripple, Coinbase, Paxos, BitGo, Fidelity and Crypto.com, among others. The GENIUS Act has yet to take full effect, and The Defiant has reported that some firms have described themselves as "regulated" or "compliant" under a law that is not yet operative.

Market ReactionCRCL shares climbed in early trading on July 10 following the announcement, according to market data for the stock on the New York Stock Exchange.

USDC had a circulating supply of roughly $73 billion as of July 9, according to CoinGecko, ranking it the fifth-largest cryptocurrency by market capitalization and the second-largest stablecoin behind Tether's USDT. The token traded at $0.9999, in line with its dollar peg.

Circle has built out its regulated footprint over the past decade. It received a BitLicense from the New York Department of Financial Services in 2015, became the first global stablecoin issuer to comply with the European Union's Markets in Crypto-Assets framework in 2024, and secured a license from Abu Dhabi Global Market's Financial Services Regulatory Authority in 2025. The company also holds licenses in the U.K., Singapore and Bermuda.

Circle Internet Group secured final approval from the U.S. Office of the Comptroller of the Currency today, to establish a national trust bank, a milestone that sent the stablecoin issuer’s shares higher and deepened its ties to the federal banking system.

The regulator cleared Circle to charter First National Digital Currency Bank, N.A., which will operate under the name Circle National Trust. 

The company, which trades on the New York Stock Exchange under the ticker CRCL, said the charter places the new entity under direct federal oversight by the OCC, the primary supervisor for national banks and national trust banks.

Circle National Trust will provide fiduciary custody services for digital assets held by Circle and its affiliates. Under the business plan the OCC approved, the bank could extend custody services to a limited set of institutional customers, with a focus on banks and regulated derivatives organizations. 

The charter opens a path for the bank to manage the reserve backing USDC, the largest regulated stablecoin, which would bring that multibillion-dollar pool under federal supervision.

National trust banks differ from traditional lenders. They safeguard client assets and provide fiduciary services, and they do not take deposits or issue loans. The structure aligns its digital-asset infrastructure with a long-standing model for holding client assets under strict fiduciary standards.

“OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the U.S. financial system,” said Jeremy Allaire, co-founder, chairman, and chief executive of Circle. He said federal oversight of the trust bank “sets a new standard for transparency, governance, and scale” and unlocks a phase of adoption in which large financial institutions can build on public blockchains with confidence.

Investors welcomed the decision. CRCL shares climbed as much as 14% on the day of the announcement, a rebound from a three-month low. Other crypto-linked names, including Coinbase and Strategy, posted gains near 5% this morning as bitcoin bounced.

CRCL shares have since settled to 5% gains.

Circle’s federal framework The approval caps a process that began when Circle filed its application on June 30, 2025. The OCC granted conditional approval in December 2025, alongside peers such as Ripple, BitGo, Fidelity Digital Assets, and Paxos. 

The final decision arrives as the GENIUS Act, the federal stablecoin law enacted in July 2025, moves toward full implementation in early 2027. 

That statute requires OCC supervision of large stablecoin issuers, and the trust charter positions Circle to meet the mandate while bringing USDC reserves into a federal framework.

Circle has built a record of regulatory engagement across markets. It received a BitLicense from New York in 2015, became the first global stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets framework in 2024, and holds licenses in the United Kingdom, Singapore, Bermuda, and Abu Dhabi.

The charter strengthens USDC’s role as regulated digital-dollar infrastructure for payments, settlement, and capital markets, Circle said.

Micah Zimmerman

Micah first discovered Bitcoin in 2018 but remained a skeptic on the sidelines for too long. Since 2021, he has covered crypto and business and now works as a news reporter for Bitcoin Magazine, based in North Carolina.

Circle (CRCL) has received final approval from the US Office of the Comptroller of the Currency (OCC) to establish a national trust bank, marking a major regulatory milestone for the USDC issuer.

Circle gains OCC approval to establish national trustThe approval allows the company to launch First National Digital Currency Bank, N.A., which will operate as Circle National Trust, according to a Friday announcement. The trust bank will initially provide federally regulated digital asset custody services for Circle and its affiliates while operating under direct OCC oversight.

“OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the US financial system,” said Circle co-founder Jeremy Allaire.

Circle noted that the new entity will strengthen the infrastructure supporting USDC by enhancing custody capabilities. The company also plans to expand custody services to institutional clients, including banks and other regulated financial institutions, over time.

“Federal oversight of our trust bank sets a new standard for transparency, governance and scale for Circle’s infrastructure and unlocks a new phase of adoption, where leading financial institutions can build on public blockchains with clarity and confidence,” Allaire added.

Circle added that the national trust bank could eventually manage reserves backing USDC under federal oversight, a move that could further strengthen transparency and regulatory oversight of the stablecoin.

The approval follows Circle's initial application in June 2025 and the conditional approval granted by the OCC in December 2025. It also builds on the company's existing regulatory licenses across multiple jurisdictions, including compliance with the EuropeanUnion's Markets in Crypto-Assets (MiCA) framework and licenses in the UK, Singapore, Bermuda and Abu Dhabi.

OCC approval signals broader crypto banking shiftThe OCC also previously approved national trust bank charters for several other crypto-focused firms. In late 2025, the regulator granted conditional approvals to several applicants, including Ripple National Trust Bank.

It also approved charter conversions for Paxos Trust Company, BitGo Bank & Trust and Fidelity Digital Assets, with additional conditional approvals later issued to entities affiliated with Crypto.com and Bridge.

The growing number of national trust bank approvals reflects a broader effort to bring digital asset custody and stablecoin activities under federal banking supervision, providing crypto firms with a clearer regulatory pathway while expanding access to regulated financial infrastructure.

Circle shares rose over 10% following the announcement but have since eased to 4.2% at the time of writing.

Circle Internet Group, Inc. (NYSE: CRCL), a financial technology firm, announced today that it has received approval from the U.S. Office of the Comptroller of the Currency (OCC) to set up Circle National Trust, or First National Digital Currency Bank, N.A. (“FNDCB”). The authorization will be an important regulatory milestone for a stablecoin issuer, which pushed the CRCL stock up by 10%.

Circle Eyes Establishing National Digital Asset Trust The latest feat puts its national trust bank directly under federal control and prepares for federally regulated custody and, eventually, management of USDC reserves. The new institution will initially offer digital asset custody services for fiduciary purposes to Circle and its affiliates.

The OCC-approved business plan allows the bank to expand those services, on an optional basis, to a selected subset of institutional clients (banks and regulated financial institutions) as demand dictates. Circle also stated the charter is meant to help with the future regulation of the USDC reserve and will be included in a federal banking system that aims to build transparency and trust.

Circle Co-Founder and CEO Jeremy Allaire said, “OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the U.S. financial system.” He added that “Federal oversight of our trust bank sets a new standard for transparency, governance, and scale for Circle’s infrastructure and unlocks a new phase of adoption, where leading financial institutions can build on public blockchains with clarity and confidence.”

MiCA Feat & CRCL Stock Update Circle filed an application for charter on June 30, 2025, and in December 2025 was conditionally approved, after which it has been expanding its regulatory oversight around the world. The company was already the first to get a BitLicense in New York in 2015, the first global stablecoin issuer to meet the EU’s MiCA requirements in 2024. Moreover, it is licensed in the UK, Singapore, Bermuda, Canada, and Abu Dhabi.

Following the announcement, CRCL stock surged in Friday pre-market trading, jumping 10.25% to $69.47 on Thursday when it closed 1.65% down at $63.01. The recovery follows 20% drops in shares over the last month under pressure from the launch of OUSD stablecoin and legal issues.

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Circle shares vaulted more than 7.7% in Friday’s pre-market session after the company behind the USDC stablecoin announced it had received final approval from the U.S. Office of the Comptroller of the Currency to form a federal trust bank devoted to digital asset custody. The newly approved entity, called First National Digital Currency Bank, N.A., will operate as Circle National Trust, according to the original report from WuBlockchain. For now, the bank will provide fiduciary custody services to Circle and its affiliates, but the charter opens a door that none of the other large stablecoin issuers have walked through yet.

From State-Level Trusts to a Federal Perimeter Most digital asset custody firms in the US operate under state trust charters—firms like Anchorage, Paxos, and others. A national trust bank charter from the OCC carries a different weight. It pulls Circle inside the federal banking framework, giving it access to the Federal Reserve’s payment rails and establishing a direct line of supervision that many institutional allocators demand before they deposit serious capital.

Circle’s move isn’t happening in isolation. The demand for regulated custody infrastructure has been climbing alongside the tokenization wave that saw $20 billion in real-world assets move on-chain this year, including a landmark settlement between Ondo and JPMorgan and Bullish’s $4.2 billion acquisition of Equiniti, as detailed in Blockchain Reporter’s weekly tokenization roundup. When large traditional finance players buy settlement infrastructure outright, a federally chartered custody bank from the biggest stablecoin issuer starts to look less like an experiment and more like a missing piece of market plumbing.

That trend is echoed in the staking market. Sui’s 18% surge earlier this month was partly fueled by a Nasdaq firm launching an institutional staking product—a clear signal that regulated custody wrappers are becoming the gatekeepers of institutional capital flows. Circle’s trust charter fits squarely into that picture.

What the National Trust Charter Changes for USDC Circle issues the second-largest dollar stablecoin by market cap, and USDC has historically relied on a network of banking partners—including BNY Mellon and Silvergate Bank—to hold reserve assets. A wholly owned national trust bank allows Circle to bring that custody function in-house under a single federal supervisor. That’s structurally significant: it reduces third-party banking risk, gives Circle more control over the composition and auditing of reserves, and potentially lowers the cost of operating the stablecoin.

The timing also lands in the middle of a bitter legislative fight over stablecoin regulation and the broader role of crypto in US banking. Traditional banks have been lobbying to kill key provisions of the biggest crypto bill in US history just days before a Senate vote, a story Blockchain Reporter covered closely. Circle, by securing an OCC charter, sidesteps part of that brawl. It’s already built something that looks like a bank—without relying on Congress to pass new legislation first.

What Remains Unclear The OCC approval is a license to begin operating, but it doesn’t spell out every service the trust bank will offer. The initial scope is limited to fiduciary custody for Circle and its affiliates, leaving out third-party clients for now. How quickly Circle expands that mandate—and whether it ever uses the charter to offer interest-bearing accounts that compete directly with bank deposits—will determine how the securities and banking regulators react.

State regulators have previously challenged the OCC’s authority to charter fintech banks, and a national trust charter for a digital asset issuer is likely to face scrutiny from state-level offices that see it as federal overreach. Even so, the market’s immediate response—a 7.7% premarket jump in Circle shares—suggests investors view a federal custody license as a durable moat, at least until the legal lines are tested.

For traders and institutions, the clearer signal is that the infrastructure for holding digital assets inside the US banking system is hardening. When a stablecoin issuer becomes its own trust bank, the gap between crypto-native and traditional financial rails narrows further.

AUTHOR

Max delves deep into the cryptocurrency realm, with a passion for altcoins and NFTs. Convinced of crypto's transformative potential, he envisions a decentralized financial future. Max's background in the financial sector grants him unique insights into global monetary systems. In his leisure, Max embraces the thrill of adventures and is an avid sports enthusiast, finding balance and rejuvenation away from work.