Crypto Firm Circle Announces Intentions To Be a National Digital Currency Bankby Fintechnews Switzerland August 10, 2021
Circle, creator of the second largest stablecoin USDC, announced its intention to become a full-reserve national commercial bank, operating under the supervision of the Federal Reserve, U.S. Treasury, Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC).
In the coming years, Circle said that it anticipates USDC growing into hundreds of billions of dollars in circulation, continue to support trillions of dollars in low-friction, high-trust economic activity and become widely used in financial services and internet commerce applications.
Establishing national regulatory standards for dollar digital currencies is crucial to enabling the potential of digital currencies in the real economy, including standards for reserve management and composition.
Since inception, USDC reserves have been bound by the permissible investment rules under state money transmission regulations, which is how Circle is regulated today.
“Circle has always held ourselves to the highest of regulatory standards, to ensure that a dollar exchanged into USDC is safe. As we move towards national bank-level regulatory supervision we will begin to publish information about the fundamental liquidity of USDC and our liquidity coverage under Basel III.
Similarly, as specific national supervisory standards for dollar digital currencies emerge from the President’s Working Group, we will proactively work with our national regulatory counterparts on the ultimate commercial adoption of new dollar digital currency standards.”
said Jeremy Allaire, Circle Co-Founder and CEO.