Circle plans to become a fully-reserve national digital currency bank

Circle, a digital payment company backed by Goldman Sachs, officially disclosed its plan to become a U.S. fully-reserve national digital currency bank.

Announce News on Monday, Co-founder and CEO of Circle Jeremy Allaire It is noted that Circle is willing to operate under the supervision and risk management requirements of the Federal Reserve, the U.S. Department of the Treasury, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation.

“We believe that all-reserve banking business based on digital currency technology can not only bring about a more efficient, safer, and more flexible financial system,” Allaire said.

The CEO added that Circle expects the company’s stable currency USD Coin (USDC) Will increase “tens of billions of dollars in circulation”, continue to support highly trusted economic activities, and become a popular tool in financial services and Internet business applications.

“The establishment of national regulatory standards for the U.S. dollar digital currency is essential for realizing the potential of digital currencies in the real economy, including reserve management and composition standards,” Allaire added.

Circle is known as the main developer of USDC. USDC is the second largest stablecoin in the world after Tether in market value (USDT). According to reports, as of press time, USDC is the eighth largest cryptocurrency with a market value of 27.8 billion U.S. dollars, while USDT’s market value is close to 63 billion U.S. dollars. data From CoinGecko.

Compared with the partial reserve banking business, the full reserve banking business requires the bank to store all the funds of each depositor in the form of cash and cash equivalents, which can be withdrawn immediately on demand at any time. Also known as 100% reserve banking, full reserve banking provides an alternative to a system in which only a small portion of bank deposits are backed by actual cash on hand and can be used for withdrawal.

related: Jeremy Allaire: “USDC has completed half of flipping PayPal”

This news was released shortly after Circle Archive The Form S-4 registration statement submitted to the U.S. Securities and Exchange Commission provides a preliminary statement and prospectus regarding its plan to go public through a merger with Concord Acquisition, a blank check company. According to the terms of the agreement, New Irish holding company will acquire Concord and Circle And become a listed company that is expected to be listed on the New York Stock Exchange.