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Circle Files for National Trust Bank License in the U.S.
In a move that is expected to have far-reaching implications for the cryptocurrency and financial markets, Circle Internet Group Inc., a top-tier stablecoin issuer, has applied for a national trust bank license in the United States with the Office of the Comptroller of the Currency (OCC).
According to reports, the company intends to establish the First National Digital Currency Bank, which would manage its reserves in USDC, the signature product from Circle. The move is seen as a significant step towards further legitimizing digital currencies and blockchain-based financial services.
Jeremy Allaire, CEO at Circle, emphasized the importance of becoming a national trust bank, stating that it is a continuation of their efforts to maintain the highest standards of trust, transparency, governance, and compliance.
If approved by the OCC, this would be a groundbreaking moment for the industry. Currently, Anchorage Digital holds the only national trust bank charter in the United States. With Circle entering the fray, institutional investors can expect increased access to digital assets, resulting in a significant injection of capital into the cryptocurrency market.
Moreover, the recent approval of the GENIUS Act in the U.S. Senate has led to an increase in demand for stablecoins among institutional investors. The move by Circle is seen as a response to this growing demand and its commitment to providing custody services for digital assets on behalf of these institutional investors.
The expected impact of Circle’s entrance into the banking sector would be profound, offering more liquidity and stability to the crypto market. This could ultimately lead to increased mainstream adoption and further cement the role of cryptocurrencies in the financial landscape.
It remains to be seen whether Circle will be granted a national trust bank license by the OCC.
Source: coinpedia.org
