Blockchain and Crypto, Member Exclusive

‘The banking pendulum is beginning to swing’: Circle plans to become a national digital currency bank

  • Circle will be the first crypto firm to become a full-reserve commercial bank, if its application is approved.
  • This could place the firm in a unique position to act as a link between traditional and decentralized finance.
close

Email a Friend

‘The banking pendulum is beginning to swing’: Circle plans to become a national digital currency bank

Blockchain-based payments company Circle has filed to become a national commercial bank. The news was announced in a blog post by co-founder and CEO Jeremy Allaire, which states that Circle would operate under the supervision of the Federal Reserve, the U.S. Treasury, the OCC and the FDIC.

Circle is perhaps best known as the principal operator of USDC, the world’s second-largest stablecoin by market capitalization after Tether (USDT). Currently the ninth-largest cryptocurrency, USDC has a market value of over $27 billion.

Allaire anticipates USDC will eventually reach hundreds of billions of dollars in circulation, and he believes that full-reserve banking built on digital asset infrastructure can lead to a more efficient, safe, and resilient financial system.

“Establishing national regulatory standards for dollar digital currencies is crucial to enabling the potential of digital currencies in the real economy, including standards for reserve management and composition,” said Allaire.

The news of Circle’s intention to become a bank comes just a month after the company filed an S-4 with the SEC to go public on the New York Stock Exchange through a merger with Concord Acquisition Corp., a publicly traded SPAC. The deal valued the firm at $4.5 billion.


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “‘The banking pendulum is beginning to swing’: Circle plans to become a national digital currency bank”

Outlier OpinionsMakers

Member Exclusive

Marketing Briefing: Why banks are outsourcing their marketing initiatives

  • Banks are diving headfirst into marketing, but how are they organizing their marketing strategies?
  • Plus, VP head of sales and marketing at Kabbage from American Express Brett Sussman dives into the company’s latest research into SMB recovery.
Rivka Abramson | August 11, 2022
Data Snacks, Member Exclusive

Data snack: FIs are adopting martech – but are they making the most of it?

  • Financial institutions are paying attention to the benefits of marketing technology.
  • But using martech to better boost strategy and data analysis remains tricky.
Rivka Abramson | August 10, 2022
Blockchain and Crypto, Member Exclusive

Can crypto become the new cash? A look at adoption patterns for consumers and merchants

  • Market volatility raises concerns, but recent data suggest that cryptocurrencies may be on their way to adoption for commerce.
  • Most consumers want to be able to pay with crypto, and merchants are starting to cater to this need in earnest.
Rabab Ahsan | August 08, 2022
Green Finance, Member Exclusive

Green Finance Briefing: What’s a sustainable business strategy in banking?

  • Executives need to start thinking of how to create and execute a sustainability strategy as the economy transitions to a carbon-neutral future.
  • At Tearsheet's Banking on the Planet conference, speakers outlined how financial companies can start on their sustainability journeys – it's all about education, collaboration and transparency.
Iulia Ciutina | August 05, 2022
Member Exclusive, Payments

Payments Briefing: What do FIs need to know about payments in the metaverse?

  • This week, we look at how and why traditional FIs and fintechs should be thinking about payments in the metaverse.
  • We also discuss why card giants like Mastercard, Visa, and Amex are getting involved in sonic branding.
Ismail Umar | August 04, 2022
More Articles