USDC stablecoin issuer Circle Internet Financial is planning to apply for a crypto bank license in the US in the near future.
A Bloomberg report said Wednesday that the company has been in talks with regulators on the issue since August 2021, when it first disclosed plans to convert to a bank, according to co-founder and CEO Jeremy Allaire. Allaire said the firm will apply “hopefully in the near future.”
Allaire told Bloomberg that Circle’s management is in talks with the US Office of the Comptroller of the Currency on a range of issues related to its bank plans, including the interoperability of blockchains and how to assess operational risks in specific blockchains.
In line with the call of the regulators
In recent months, US regulators have called for more regulation of stablecoins, arguing that they should be issued by banks. If Circle’s plan to become a bank becomes a reality, it will mean an easy run for both USDC and the company with regulators in the US market.
Circle’s intention to transform into a crypto bank follows in the footsteps of Anchorage Digital, Protego Trust Bank NA, and Paxos Trust Company, which have received federal charters to operate as such entities in the US.
Circle raises $400 million in funding round
On April 12, Circle announced that it had raised $400 million in a funding round attended by major finance firms including BlackRock, Marshall Weiss, Fidelity and Fin Capital.
In addition to the funding, Circle and BlackRock also forged a strategic partnership, where the two companies will explore applications for “USDC in the Capital Market.”
“As part of their partnership, the two companies will expand their existing relationship whereby BlackRock manages significant asset reserves backing USDC,” Cryptopotato reported.
In February, Circle Announced a deal with Concorde Acquisition Corp., a NYSE-listed special purpose acquisition company (SPAC), valued at a valuation of $9 billion, doubling from $4.5 billion in July 2021. At the time, the firm also revealed plans to go public by the end. of 2022.
Founded in 2013, Circle’s USDC is the second largest stablecoin with a market capitalization of just over $50 billion. It is also the fifth largest cryptocurrency.
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