Circle, a blockchain payments infrastructure service provider, has revealed its ambition to become the United States’ first national digital currency bank.
According to the firm’s press release, it intends to transform itself into a full-reserve Federal commercial bank that will operate under the supervision of the United States Federal Reserves and other regulatory bodies such as the OCC, FDIC, and the United States Treasury. Experts speculate that because the news broke so soon after the Poloniex-SEC settlement, the firm could attempt to gain good global exposure.
Circle Attempts to Join Forces With The Federal Reserves Of The United States
The financial technology firm unveiled a grand vision of collaborating with the American Federal Reserve and transforming itself into a US national bank. According to the company, if the banking industry is built on digital ledger technology, it will completely transform the financial system, making it more efficient, safer, and resilient for consumers.
In addition to the vision, the company’s CEO, Jeremy Allaire, stated that Circle’s stablecoin, USD Coin (USDC), could grow significantly shortly and would greatly support high-trust economic activities in the space. He went on to say that USDC could become a popular currency in the financial sector and for internet commerce.
Circle created the USD Coin. After Tether, it is the second most valuable stablecoin in terms of market capitalization (USDT). The USD coin has a market capitalization of more than $27 billion at the time of writing.
Circle’s plans are more ambitious.
Circle recently filed a registration statement with the Securities and Exchange Commission regarding a proposed merger with Concord Acquisitions. According to reports, Circle and Concord will be acquired by an Irish firm and will become a publicly-traded company, possibly listed on the NYSE later this year.
With the federal government’s increasing adoption of crypto assets, the traditional financial system also seeks to merge with modern technology. In this context, Circle’s vision appears to be a calculated step by the company. Experts speculate that Circle may simply be attempting to gain a little more market exposure by revealing its vision.
Furthermore, the announcement came immediately after the Poloniex and SEC controversy. As previously reported by CoinGape, Poloniex did not admit to any wrongdoings; however, the SEC charges will be resolved by paying the regulator over $10 million in settlement charges. The agreement is beneficial to Circle, which acquired Poloniex in 2018, because it will not impede the former firm’s growth.