December 8, 2023

Circle will become the national bank

Circle will become a national bank

Circle plans to obtain the status of a national commercial bank, which will operate under the supervision andthe leadership of US regulators.

In a blog post on August 9, the company revealed that Circle aims to create a digital bank that combines cryptocurrency and fiat payments.

Over the past eight years, the possibilities of digitalcurrencies and blockchain have expanded significantly. Their long-term positive impact on the world is becoming more tangible, which is reflected in more active interaction with leading financial regulators around the world.

USDC stable coin was launched in 2018,approximately five years after the founding of Circle, headquartered in Boston. Through collaboration with Coinbase and regulators, USDC has been developed to comply with US money transfer laws.

There is an amount in circulation exceeding 27.5billions of US dollars, and the company believes that its "commitment to trust, transparency and accountability" will be the foundation for becoming a US national commercial bank with federal charter. USDC reserves are subject to rules and regulations that monitor and provide liquidity at a 1: 1 ratio.

The company predicts that USDC circulationwill grow to "hundreds of billions of dollars." Last month, the cryptocurrency company announced plans to go public in a $ 4.5 billion SPAC deal.

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