Crypto Startup Circle in Talks With U.S. to Become Federally Licensed Bank

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by Alexandra Sayapina · 3 min read
Crypto Startup Circle in Talks With U.S. to Become Federally Licensed Bank
Photo: Circle

One of the most valuable cryptocurrency platforms is ready to become a ‘Guinea Pig’ for the U.S. regulators and break the ice between it and the crypto sphere.

Circle Internet Financial Ltd. is a perfect example of an ambitious company that can make the difference. This crypto startup backed by Goldman Sachs Group Inc. promises to change everything and create the new shape of money – and it seems to keep the word. The recent report by Bloomberg has revealed the far-reaching plans of the crypto firm: Circle wants to get a federal banking license and become a registered brokerage and trading platform with the Securities and Exchange Commission (SEC).

The story of Circle started in 2013 and less than in five years it has become one of the most valuable cryptocurrency platforms in the world. This company has brought together the amazing pool of projects from developing investment mobile app to acquiring digital token exchange Poloniex. Innovative ideas, dedicated team and support of influential firms have massively contributed to the success of Circle. However, there is one more feature of this company that has definitely helped it to become the one it is now.

Circle gets lots of mentions in mass-media. Usually the reasons are some news on the new projects or partnership with influential companies like Chinese Bitcoin miner Bitmain. But this company has also made headlines because of its collaboration with regulators. Circle became the first company to be granted BitLicense from the New York State Department of Financial Services. The crypto startup pioneered in one more sphere: the first virtual currency licensure approved by the British government also belongs to Circle. The next goal is bringing to the new level the relationship between the company and the U.S. regulators.

Getting a federal banking license will give Circle the opportunity to broaden the range of services provided to its customers. The company has already proved that it knows how to help people to get accustomed with the crypto sphere. A nice example is a ‘Buy the Market’ feature of Circle’s mobile app that can help novice investors to make its way to the world of cryptos. A federal banking license will give Circle more opportunities: it may even provide its customer with an option of holding the assets in either government-issued currencies or digital coins. Not to mention all the benefits of becoming equal participant in the financial sphere like using the banking networks.

The indirect signs of Circle’s serious plans on getting registered with the SEC can already be noticed. Poloniex, the exchange platform owned by the company, has already delisted some of the tokens to meet the SEC’s standards. Circle is interested in the status of alternative trading system or broker dealer – less public than traditional one but still providing lots of opportunities.

Circle is not just another company – it is a real game changer. This status brings not only benefits and profit, the company risks a lot. The Circle team understands the potential threats, but the situation is not going to change unless one company creates the precedent. The Circle CEO Jeremy Allaire has commented on this issue:

“The regulators need to figure this out because eventually other banks that they regulate are going to want to hold crypto. They’re going to need to have rules for this. We can be a great guinea pig.”

The new plans of Circle will take time because they are not really about one company getting a license – they are about building a solid bridge between the crypto community and the U.S. regulators.

Bitcoin News, Blockchain News, Cryptocurrency News, News
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