By: 12 August 2021

Circle would come under the supervision and risk management requirements of several US currency regulators

Circle plans to become US commercial bank

Circle, the US fintech firm combining with Concord Acquisition Corp with a view to going public, is taking steps to become a federally chartered national commercial bank.

The move means Circle, which provides internet-native, digital currency-powered, transaction and treasury services, would come under the supervision and risk management requirements of several US currency regulators.

Making the announcement in a blog post, Jeremy Allaire, Circle’s co-founder and chief executive officer, says: “We believe that full-reserve banking, built on digital currency technology, can lead to not just a radically more efficient, but also a safer, more resilient financial system.”

The announcement comes as USDC, the digital currency that Circle operates, reached more than $27.5 billion in circulation. The fintech, working in partnership with Coinbase and through the Centre Consortium, designed USDC to conform with stringent US money transmission supervisory and regulatory standards.

By becoming a federally chartered national commercial bank, Circle aims to continue and build on the “long-standing commitment to trust, transparency and accountability in the dollar-denominated reserves backing USDC”.

Image: Shutterstock

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