In an announcement made by Circle on Monday, the organization reveals that it is planning to expand its work scale by evolving into a full reserve national commercial bank.
In a recent change of events, Circle which is a digital currency platform hosting stablecoins now intends to evolve and work as a full reserve national commercial bank, by amplifying its work scale and steering its operations to undergo a major banking transformation.
The change, once administered, will allow the firm to have direct access to the US federal reserve system which will assist the bank in handling future crypto transactions in a systematic and timely procedure.
Circle Announces Its Intention to Become a Full Reserve National Commercial Bank
If the proposal disclosed by Circle gets the necessary authorization, the organization will then be working under the supervision of the Federal Reserve, US Treasury, Office of the Comptroller of the currency, and Federal Deposit Insurance Corporation.
In a blog post published by Circle, the company had announced that they now intend to journey alongside the efforts of US financial regulators who are working in sync with the President’s Working Group on financial markets to successfully conduct and manage various risk and opportunity factors posed by large scale private sector dollar digital currencies. At present, the firm manages the second-largest stable coin after Tether’s USDT.
If Circle successfully manages to undergo such a massive change, it will then have access to perform tasks and work beyond the category of OCC banking charter which was till now limited to firms like Anchorage and related crypto native enterprises.
The firm has issued an S4 form on Friday stating their plans to pursue the strategy to work as a full-time reserve national bank to decrease their dependence on third parties associations.
Circle had previously declared its intent to go public later this year with a special acquisition company called SPAC and is now seeking to become a crypto national bank to reduce cost and time for settling growing crypto transactions. The company is one of the leading digital currency platforms that allow businesses to access the power of stablecoins to conduct payments and perform commercial transactions in a simplified manner.