Circle Internet Group (ticker CRCL) has applied for a national banking license, according to Reuters. The news marks the second-largest stablecoin issuer's latest move to become more ingrained in the legacy financial system, following a hugely successful initial public offering this month.

A U.S. Office of the Comptroller of the Currency license would enable Circle to act as a custodian for its own reserves and hold crypto assets on behalf of institutional clients. However, Reuters says the license would not allow Circle to take cash deposits or make loans like traditional banks.

The OCC-regulated entity would be called First National Digital Currency Bank, N.A., according to Reuters.

Circle has long looked to apply for a U.S. bank charter, which could open the door to it operating like a traditional lender by offering services such as deposit-taking and loan issuance. The company previously denied claims it was seeking a national trust charter or industrial bank license.

Circle went public on June 5 under the ticker CRCL in what will likely go down as one of the hottest IPOs in years. The offering was 25 times oversubscribed, priced above the indicated range at $31, and soared 167% on the first day.

On Monday, Bernstein analysts argued Circle's USDC is likely to become the largest regulated stablecoin under the GENIUS Act, thereby giving the firm a "regulatory headstart."

USDC has a current market cap of $61.5 billion, according to The Block’s data. Meanwhile, Circle's stock closed at $181.29 per share, giving the company a market cap north of $40 billion.