Circle Internet Financial, the issuer of USDC stablecoin, is planning to apply for a crypto bank license in the US in the near future.
According to co-founder and CEO Jeremy Allaire, the company has been in talks with regulators on the issue since August 2021, when it first revealed plans to convert into a bank, a Bloomberg report said on Wednesday. Allaire said the firm will apply “hopefully in the near future.”
The Circle management has been in talks with the US Office of the Comptroller of the Currency on a range of issues relating to its bank plans, including the interoperability of blockchains and how operational risks can be assessed in specific blockchains, Allaire told Bloomberg.
In Line with Regulators’ Call
In recent months, US watchdogs have called for greater regulation of stablecoins, arguing that they should be issued by banks. If Circle’s plans to become a bank become a reality, it would mean a smoother run for both USDC and the company with the regulators in the US market.
Circle’s intentions to transform into a crypto bank follow the footsteps of Anchorage Digital, Protego Trust Bank NA, and Paxos Trust Company which have received federal charters to operate as such entities in the US.