Circle announces plans to become a national digital currency bank
US fintech firm Circle has revealed it is plotting to become a federally-chartered national commercial bank.
Circle CEO Jeremy Allaire
In a blog post on the company’s website, CEO Jeremy Allaire says Circle intends to become a “full-reserve national commercial bank, operating under the supervision and risk management requirements of the Federal Reserve, US Treasury, OCC, and the FDIC”.
Circle’s products and services are aimed at marrying the existing financial system with digital currency technology within payments and finance.
It currently provides a blockchain-based payments platform as well as cryptocurrency trading services.
It is also the principal operator of the stablecoin USD Coin (USDC), of which there is currently more than $27 billion in circulation.
Allaire claims that full-reserve banking built on digital currency technology will lead to a “more efficient” financial system as customer deposits will be backed by USDC, enabling them to be withdrawn quickly when required.
The news comes after the company announced it plans to go public in a $4.5 billion merger deal with special-purpose acquisition company (SPAC) Concord Acquisition Corp last month.
Circle says a new Irish holding company will acquire both Concord and Circle and the combined company will be listed on the New York Stock Exchange (NYSE).
The transaction is expected to close in Q4 2021.
