Circle Receives OCC Approval for National Trust Bank; Stock Pares 13% Gain as Analysts Split

According to analysts, Circle (CRCL) received final approval from the U.S. Office of the Comptroller of the Currency (OCC) on Friday, July 10 to establish First National Digital Currency Bank, which will operate as Circle National Trust. The stock surged 13% in pre-market trading but pared gains to close up only 5% as Wall Street issued mixed assessments.

Mizuho and Wolfe Research called the approval strategically positive but unlikely to materially boost near-term earnings, maintaining Neutral and Underperform ratings with $85 and $65 price targets respectively. Clear Street was more bullish, stating the approval unlocks new long-term growth opportunities, and maintained the Street's highest price target at $157.