Stablecoin Giants Circle And Ripple File Registration To Create Stablecoin Banks After Trump Passes Genius Act To Legalize CBDCs
"Blockchain networks, smart contracts, stablecoins, this kind of infrastructure, essentially, for the first time in human history, creates programmable money," said the CEO of Circle.
Stablecoins are set to become more mainstream in a very big way amidst a rapidly changing financial restructuring taking place. A number of the largest crypto firms and exchanges are now seeking to create subsidiary banks to formalize and better transact these assets.
Last week, President Donald Trump signed into law the GENIUS Act, which changed the financial landscape forever, effectively legalizing central bank digital currencies (CBDC) by another name called stablecoins, which are still digital, programmable, tokenized currency that acts similar to a CBDC but is managed by third-party operators, interlinked with the Treasury and the Federal Reserve.
The bill, as explained by The WinePress last week, effectively turns companies into banks if they want to create a stablecoin.
During Trump’s signing of the Genius Act into law, a number of crypto executives were center stage at the event, including Kraken co-CEO David Ripley, Gemini co-founders Cameron and Tyler Winklevoss, Coinbase CEO Brian Armstrong, Circle CEO Jeremy Allaire, Tether CEO Paolo Ardoino and Robinhood CEO Vladimir Tenev.
Prior to the passage of the Genius Act, some of these firms were already preparing to create new digital banks under their names. Two of these include Circle and Ripple.
Circle manages USDC (USDC), a stablecoin pegged to the U.S. dollar and can be traded on several different blockchains. USDC is the second-most traded stablecoin to-date, behind Tether (USDT), the first successful stablecoin.
On June 30th, Circle filed an application with the Office of the Comptroller of the Currency (OCC) to create First National Digital Currency Bank (FNDCB).
As explained by Cointelegraph:
The proposed entity, First National Digital Currency Bank, wouldn’t operate like a traditional consumer bank. It wouldn’t offer deposits or loans. Instead, it would focus on Circle USDC trust bank functions: safeguarding USDC reserves, managing cash and short-term Treasury holdings and offering digital asset custody services to institutional clients.
Until now, reserve management relied on third-party custodians like BlackRock and BNY Mellon. By pursuing a Circle OCC charter application, Circle aims to internalize control, streamline operations, minimize risk and strengthen transparency.
Gaining a national trust charter would bring Circle’s $62.1 billion of reserves in-house. This means Circle can directly oversee the assets that back its stablecoin, adding operational efficiency while reducing counterparty risk.
With federal approval, Circle could expand its digital asset custody services — not just for USDC, but for tokenized assets, corporate treasuries and other blockchain-based financial instruments.
In doing so, Circle would develop into payment infrastructure, bridging traditional finance and Web3.
One key advantage of a Circle stablecoin bank is flawless integration. Institutional-grade digital asset custody services would support tokenized securities, real-time payments and programmable finance.
With partners like Visa, Stripe and BlackRock already experimenting with Circle payment infrastructure, the next phase is deeper adoption — OAuth-style plug-and-play modules that let banks and fintechs offer USDC without friction.
Not far behind is Ripple, which on July 2nd also filed an application with the OCC to form the Ripple National Trust Bank. Ripple is the new kid on the block when it comes it to stablecoins, launching RLUSD earlier this year. Unlike Circle, Ripple’s subsidiary Standard Custody and Trust manages their token RLUSD.
Per the application, Ripple’s filers wrote:
“Ripple issues a U.S. dollar-denominated stablecoin called Ripple USD, or RLUSD, through its subsidiary Standard Custody & Trust Company, LLC, a New York limited purpose trust company. Once chartered, the Trust Bank will conduct activities that complement Ripple’s stablecoin and other payments businesses, including management of stablecoin reserves and related fiduciary services[…].”
However, Ledger Insights notes that there are still a number of unknowns due to the secrecy of Circle and Ripple’s filings and lack of public disclosure as to their full ambitions.
Tether remains the top dog. According to Bankrate,
Tether is often hailed as the first successful stablecoin. With $149.27 billion in assets as of March 2025 — mostly low-risk U.S. Treasury bills, plus some Bitcoin and gold — Tether is a financial heavyweight. In 2024, Tether brought in $13 billion in profit, or roughly double that of BlackRock, the world’s largest asset manager.
Jeremy Allaire, co-founder and CEO of Circle, told the World Economic Forum (WEF) last year that “stablecoins were designed to basically take a traditional currency, […] and essentially mimic those as digital currencies that work on the internet.” He explained these programmable tokens can “push digital dollars directly to aid recipients’ digital wallets. All they need is a mobile device and they can be in any country.” Allaire revealed that the United Nations partnered with Circle to help distribute digital dollars to displaced Ukrainians.
He added:
“[…] Essentially storing and moving money, making and receiving a payment will essentially become instant, global, frictionless and free.
“[…] Blockchain networks, smart contracts, stablecoins, this kind of infrastructure, essentially, for the first time in human history, creates programmable money. And what I’m excited about over a 5- to 10-year period is that essentially the same thing is going to happen. Developers, entrepreneurs, builders are going to invent new uses for how money works in the internet that we can’t even anticipate.”
A number of corporations are looking into stablecoins. Mastercard is building a stablecoin network. JP Morgan is leaning into stablecoins. Then you have BlackRock doing it, which of course Larry Fink is absolutely an advocate for tokenization and Bitcoin as a trojan horse, as I exposed before. But let’s make things even crazier. Even Walmart and Amazon are working on stablecoins.
Western Union is the latest to throw its hat in the ring in pursuing a stablecoin.
Western Union CEO Devin McGranahan told Bloomberg in an interview:
“We see stablecoin really as an opportunity, not as a threat. […] We’re 175 years old, and we’ve been innovative across [those] 175 years. And stablecoin is just yet one more opportunity to innovate,” McGranahan said.
According to Decrypt, stablecoin adoption is rising. A survey of over a thousand crypto users conducted by Reown and YouGov found that 38% of users now own stablecoins, ahead of Solana at 37%. Bitcoin and Ethereum continue to dominate crypto ownership, accounting for 48% of users respectively.
AUTHOR COMMENTARY
Ecclesiastes 7:12 For wisdom is a defence, and money is a defence: but the excellency of knowledge is, that wisdom giveth life to them that have it.
This is not money: this is a programmable token that you do not hold or own; it has permissions and built-in code that influences how the tokens are spent, where, when, and what on.
It’s obvious the crypto executives knew the Genius Act was going to get signed, because why else would two of these groups look to become stablecoin banks ahead of the vote?
As I have warned, financial freedom is dying rapidly right before our eyes, but people have absolutely no idea what is transpiring.
When I first wrote about Allaire’s comments to the WEF last year, admittedly was not sure about how much stablecoins were going to be adopted. I was wrong, as clearly we are seeing this system manifest quickly and rapidly; and if the UN, WEF, BlackRock and more are touting it, well then I suppose we ought to pay attention and watch what they do.
Stay vigilant and spread awareness: most people have zero iota what just happened.
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The more I read about this topic, the more it looks like lipstick on a pig.
The U$A has a 31 trillion dollar debt they can't even pay the interest on.
Renaming the Greenback a Stable Token doesn't mean this debt doesn't still exist.
A pig is still a pig no matter how pretty you paint it up.
With so many jumping on the bandwagon, it stands to reason that one can only spend within that particular framework; ie: amazon tokens only work at amazon
Kinda like a loyalty reward program - except it will morph into the mark of the beast system the Bible warns us about.
45 / 47 has been the most destructive in the shortest amount of time - so far