New York authorities have granted Circle New York Trust a limited-purpose trust charter for the USDC stablecoin. This approval allows Circle to directly hold the multibillion-dollar reserves backing its stablecoin under regulatory supervision, without relying on third-party commercial banks. This charter positions Circle as a direct competitor to Ripple, which secured similar approval for its RLUSD stablecoin in December 2024, with the stablecoin market expected to reach $2 trillion by 2028. For Wall Street, this decision sends a clear and legally recognized signal that institutions can now work directly with USDC. Despite this major regulatory advancement, CRCL stock declined to $60.78 on July 31, erasing the previous session’s gains.
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