Circle plans to become the "national bank for digital currencies" – Bits Media

USDC stablecoin issuer plans to create a credit and financial organization with rights and opportunities, going beyond traditional banking.

Circle announced on Monday, which intends to become a "national commercial bank with a full reservation ". To ensure maximum solvency, the commercial bank must store in the form of reserves all funds raised to deposits. Such a policy is called full reservation of deposits.

Co -founder and general director of Circle Jeremy Ellir (Jeremy allaire) shared the news on Twitter:

Circle’s journey to become a national full-reserve digital currency commercial bank: https://t.co/3aNQ0bKPyr

- Jeremy Allaire (@jerallaire) August 9, 2021

“We plan to create a global digital bank bank, which will provide unhindered, instant and almost free payments, combining fiat backup currencies with open, not requiring blockchain management, To support new forms of capital accumulation and mediation ", – The company reports on its website.

In the case of approval, Circle cryptobank will function as a classic commercial bank, Accountable to regulators: Federal reserve system, US Treasury, Management of a financial controller (OCC) and federal deposits insurance corporation (FDIC).  This will be the first bank with coverage, going far beyond traditional banking services.

According to the latest certification report Circle, about 61% USDC is provided with "cash and their equivalents", That is, fiat money and funds of the cash market.

Dollar stablecoin, controlled by Circle, second in capitalization in the market after USDT. In the USDC circulation in the amount of about $27.5 billion.

Circle representative could not answer, whether the relevant documents were submitted to the federal authorities, specified in the application.