Circle up after stablecoin issuer applies for US trust bank license

Stablecoin issuer Circle's CRCL.N shares rise ~2.1% to $185.16 premarket

Circle after market on Monday said it is applying to create a national trust bank in the U.S., confirming an earlier Reuters report

If the charter is granted, it would enable Circle to act as a custodian for its own reserves and hold crypto assets on behalf of institutional clients

Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens

CRCL issues USDC, the second largest stablecoin globally by market value

The move comes as Congress gets closer to passing a bill to create a federal regulatory framework for stablecoins

CRCL went public in June in a blockbuster U.S. market debut

Shares closed the previous session at $181.29 vs IPO price of $31 apiece

Wall Street brokerages had mixed recommendations on its stock they began coverage on Monday with some analysts expressing concerns about elevated valuation