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Regulatory · Mon 3 Aug · 3 min read

Circle's NY trust charter raises stablecoin compliance bar

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What happened

Circle has secured a New York trust charter from the New York State Department of Financial Services (NYDFS). This is not a minor licensing upgrade. A trust charter places Circle under full New York banking law, with fiduciary duties, custody obligations, and ongoing NYDFS supervision attached. USDC issuance now sits inside one of the most demanding banking regulatory frameworks in the world.

Separately, Tether reported $1.5 billion in Q2 profit, driven primarily by US Treasury holdings, and disclosed a reserve surplus of $4.11 billion. USDT supply continued to grow. Tether remains the dominant stablecoin by volume and liquidity.

These two developments, taken together, define a widening regulatory divergence between the two largest stablecoins.

Why it matters

Sources: CoinDesk

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