Circle Applies for U.S. Trust Bank After IPO Surge

Circle, issuer of the USDC stablecoin, has applied to launch First National Digital Currency Bank in the U.S. to manage its reserves and offer digital asset custody for institutional clients under federal oversight. This follows Circle’s IPO, where its stock soared nearly 500% from a $31 debut to over $180 amid high volatility and sharply divided analyst opinions. Analysts such as Citi and Bernstein remain optimistic about Circle's regulatory advantage and leadership, while JPMorgan and Goldman Sachs warn of overvaluation, with JPMorgan setting an $80 price target. CEO Jeremy Allaire stated that the trust bank application supports new compliance standards and the GENIUS Act, furthering transparency and compliance. As Congress advances stablecoin regulation, Circle’s move is viewed as a proactive strategy to leverage institutional demand and regulatory clarity. However, some commentators, including Jim Cramer, believe the current stock price is excessively high, highlighting ongoing debate over the company’s valuation.