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      Circle National Trust Launches Regulated Custody Services for Bitcoin

      Circle National Trust, operating as First National Digital Currency Bank, N.A., has officially commenced operations after receiving final approval from the Office of the Comptroller of the Currency (OCC) in the United States. The bank opened its doors on July 24, 2026, with the primary goal of providing regulated custody services for cirBTC, Circle's wrapped Bitcoin product. This service allows Bitcoin holders to engage with decentralized finance (DeFi) protocols without needing to sell their Bitcoin.

      As a federally chartered trust bank, Circle National Trust functions as a qualified custodian, holding Bitcoin in segregated accounts that are protected from bankruptcy claims. Each cirBTC token is backed 1:1 by native Bitcoin, ensuring that for every token in circulation, an equivalent amount of Bitcoin is securely held by the bank. This structure aims to enhance trust and transparency, addressing concerns that have historically plagued other wrapped Bitcoin products.

      The integration of Chainlink's Proof of Reserve system further bolsters transparency by allowing users to verify the existence of reserves on-chain, rather than relying solely on periodic audits. This innovation is designed to mitigate counterparty risks that have made institutional investors wary of wrapped Bitcoin products in the past. Circle's regulatory framework also includes compliance with the European Union's Markets in Crypto-Assets (MiCA) regulations, positioning the company for broader market engagement.

      Circle's regulatory journey began with an application filed on June 30, 2025, and progressed through conditional approval in December 2025 to final OCC sign-off in July 2026. This swift timeline reflects the company's commitment to establishing a secure and compliant environment for Bitcoin custody, potentially setting a new standard in the industry.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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