Stablecoin Issuers Face Three Charter Paths Under GENIUS Act

The approval of Ripple National Trust Bank has highlighted three charter options for stablecoin issuers: an OCC national trust charter, a full-service national bank charter and a state trust company charter.

The national trust route is available to an uninsured national bank that receives OCC approval to issue payment stablecoins. Most national trust banks do not take deposits or make loans and do not have FDIC insurance, according to OCC guidance. Stablecoin holders therefore are not insured depositors of the trust bank.

A national trust bank can issue nationwide under OCC supervision and receive the legal preemption available to national banks. The GENIUS Act sets no issuance ceiling for this route. The OCC has determined that stablecoin issuance and related services are permissible activities for national trust banks when conducted as trust company operations.

The OCC’s final rule takes effect Jan. 18, 2027. It sets a minimum capital requirement of $5 million or a higher amount specified in the bank’s approval conditions. A new issuer must also hold assets equal to 12 months of total expenses for 36 months. An issuer with annual expenses of $8 million would therefore need at least $13 million before any higher OCC requirement. Federal applications receive a 30-day completeness review and may be deemed approved after 120 days, subject to the rule’s conditions.

The OCC’s conditional approval issued in December 2025 required Ripple National Trust Bank to maintain at least $11.7 million in Tier 1 capital. Circle’s trust bank received a $6.05 million Tier 1 capital requirement in its conditional approval.

A full-service national bank can take deposits and make loans and must have FDIC insurance. Under the OCC rule, an insured national bank or federal savings association must use a subsidiary to issue payment stablecoins and obtain prior OCC approval for that subsidiary. The parent bank remains subject to capital, liquidity and Community Reinvestment Act requirements. Its holding company is subject to Federal Reserve supervision.

This structure connects stablecoin issuance with a bank’s deposit and lending operations. It also places the issuer within a broader banking framework than a company focused only on issuing a payment stablecoin.

A state trust company can qualify as a state payment stablecoin issuer if it is established under state law and approved by the relevant state regulator. These companies generally do not have FDIC insurance and do not issue through a national bank charter. New York limited purpose trust companies are one example.

The GENIUS Act allows a state issuer to operate under a state framework substantially similar to the federal rules while its consolidated outstanding issuance remains at or below $10 billion. After exceeding that amount, the issuer generally must transition to federal oversight within 360 days unless it receives a waiver. The transition requires a federal application and regulatory review.

RLUSD illustrates how state and federal entities can work together. Standard Custody & Trust Company, a New York limited purpose trust company regulated by the New York Department of Financial Services, is the token’s issuer. Ripple National Trust Bank manages the reserves and serves as collateral trustee.

Across the three routes, issuers must hold reserves equal to the value of tokens in circulation in eligible assets, maintain a public redemption policy and refrain from paying interest or yield to token holders. The charter determines the primary regulator, banking powers and geographic framework, while the GENIUS Act and OCC rules govern the stablecoin activity.