Crypto Company Circle Seeks To Become Global Digital Currency Bank
August 10 2021 - 4:52AM
NEWSBTC
The company behind the increasingly popular USDC stablecoin dreams
big. Circle wants to leverage its know-how and good reputation to
become “a global digital currency bank.” That means it’s also
looking into becoming a digital currency bank in the US. Their
plan’s announcement focused on that region of the planet, but the
wording makes it clear that they’re ultimately looking for
worldwide domination. Related Reading | Is USDC’s Billion
Dollar Growth A Sign Crypto Smart Money Is Ditching Tether?
According to Coindesk, “this would be an industry first, with a
scope far beyond the OCC banking charter already conditionally
issued to Anchorage, Paxos and other crypto-native financial
services firms.” The company’s aim is to provide “frictionless,
instant and nearly free payments that combined fiat reserve
currencies with open, permissionless blockchains, and eventually
building on these open networks to support new forms of capital
formation and intermediation.” It’s the project ready for
prime time or in its infancy? Did they file the documents already?
Will they be able to pull this off? Keep reading for extra clues
and info. USDC price chart for 08/10/2021 on Bitbay | Source:
USDC/USD on TradingView.com Circle Played Nice With Governments
From The Get-Go The USDC stablecoin is issued by CENTRE, a
joint venture between Circle and Coinbase. Their aim is “to conform
with stringent U.S. money transmission supervisory and regulatory
standards.” In contrast Tether, their main competition, is famous
for the probe that the US Department Of Justice launched against
them. The main point of contention against Tether is the reserves
they hold to back up their USDT. Attacking their competition’s weak
spot, Circle claims, “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.” Since regulatory
compliance is their forte, Circle spends half of their announcement
praising their own transparency and USDC’s liquidity even “in times
of intense demand to redeem USDC”. To prove that, they provide an
independent accountant report that highlights the “composition of
USDC reserves, including the credit quality of the underlying
assets.” Related Reading | Tether (USDT) To Face Do or Die
Situation in 2021: Messari Report Why does all of that have to do
with their plans to become a national digital currency bank? It
proves that they’re in tune with the US Government. Now, with
USDC at more than $27.5 billion in circulation, and building on our
long-standing commitment to trust, transparency and accountability
in the dollar-denominated reserves backing USDC, we are setting out
to become a U.S. Federally-chartered national commercial bank.
Circle intends to become a full-reserve national commercial bank,
operating under the supervision and risk management requirements of
the Federal Reserve, U.S. Treasury, OCC, and the FDIC. Other Big
Plans For The Crypto Company Recently, Circle announced its
intention to go public before the end of the year. According to
Coindesk, the company “partnered with a special purpose acquisition
company (SPAC) to go public later this year. The deal valued Circle
at $4.5 billion.” Also, their USDC project will soon go live in
multiple blockchains. As NewsBTC informed: It will soon be
available in, “Avalanche, Celo, Flow, Hedera, Kava, Nervos,
Polkadot, Stacks, Tezos, and Tron.” That will bring the total to
14; since USDC is already functional in Ethereum, Algorand,
Stellar, and Solana. In related news, NewsBTC recently highlighted
a Messari report that shows USDC is the most used stablecoin in
DeFi. From what Ryan Watkins, a credible researcher, predicted, the
stablecoin share for Tether on Ethereum could dip below 50%. In
addition, Watkins revealed that more than half of USDC’s total
supply is now in smart contracts. The equivalent value for this USD
Coin supply is about $12.5 billion. According to Messari,
CoinMetrics data estimates show that USDC’s stablecoin supply is
over 40% on Ethereum. However, none of that guarantees that their
plans to become a global digital currency bank will come true. Keep
the NewsBTC tab open for further information on this developing
story. Featured Image by Chaitanya Tvs on Unsplash - Charts by
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