Circle To Apply for US Bank Charter Soon

The issuer of USDC stablecoin Circle said it’s applying for a US bank charter soon.
Circle CEO Jeremy Allaire said OCC is providing their full attention regarding the matter.
If approved, Circle will be the newest member of the federally chartered crypto banks in the US.

Crypto payments firm Circle Internet Financial LLC, the issuer of the USDC stablecoin, said it’s looking to apply for a US bank charter in the near future.

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According to Bloomberg, the crypto payments firm revealed its plan for a bank charter in 2021. However, the company hasn’t submitted an application to the Office of the Comptroller of the Currency until now.

Jeremy Allaire, CEO of Circle, disclosed that the company has already reached out to the regulators regarding the matter. Allaire also said they’re “making good progress” about it.

The nature and level of risks connected to the crypto industry is the reason why regulators might not completely approve this kind of application. Despite the risks, Allaire thinks the company’s strong relationship with the regulators will add to their favor.

Allaire said:

“They’ve been doing a lot of work laying the groundwork for how they’re going to supervise crypto, how they’re going to supervise stablecoin issuers specifically.”

In addition, Allaire indicated that the Office of the Comptroller of the Currency (OCC) is providing them full attention regarding the matter.

Circle will become the newest member of the federally chartered crypto banks in the US if so. Three US crypto banks including Anchorage Digital, Paxos Trust Company, and Protego Trust NA have already received preliminary approval.

Circle and OCC tackled issues regarding the firm’s banking ambitions and how they’re going to operate its blockchain. The issue, given that there are more than $1 billion hacks within crypto bridges this year already, has become alarming.

Therefore, both OCC and Circle had discussed examining the operational risks of a specific blockchain network. Yet, OCC has declined to comment on the matter.

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Bryan Yanzon

Bryan is a gamer who became genuinely interested in crypto after his initial exposure to Play-to-Earn games like Axie Infinity and Pegaxy. He has basic knowledge of technical analysis and is keeping an eye out for interesting developments in the metaverse and GameFi space.