CEO Jeremy Allaire: Circle Plans To Apply For A Bank License In The U.S.

Circle Internet Financial, the company behind USDC stablecoin, is planning to apply for a crypto bank license in the United States in the near future. 

According Bloomberg report, CEO Jeremy Allaire revealed that Circle has been in talks with regulators on the issue since August 2021, when it first revealed plans to convert into a bank. Allaire said the firm will apply the license “hopefully in the near future.” 

Allaire said that the Circle management has been in talks with the US Office of the Comptroller of the Currency on various matters relating to its bank license plans, such the interoperability of blockchains and how operational risks can be assessed in specific blockchains.

Recently, the U.S. regulators have called for greater regulation on stablecoins, saying that they should be issued by banks. If Circle’s becomes a licensed bank, it would mean a smoother run for both USDC and the company with the regulators in the US market.  

Circle’s plans to become a bank, follows a similar move from Anchorage Digital, Protego Trust Bank NA, and Paxos Trust Company, which have received federal charters to operate as such entities in the US.

Earlier this week, Circle announced funding round worth $400 million backed by major finance firms, including Blackrock, Marshall Wace, Fidelity, and Fin Capital. 

Circle and BlackRock also entered a strategic partnership where the two companies would explore applications for “USDC in capital markets.”

“Dollar digital currencies like USDC are fueling a global economic transformation, and Circle’s technology infrastructure sits at the center of that change. This funding round will drive the next evolution of Circle’s growth. It’s particularly gratifying to add BlackRock as a strategic investor in the company. We look forward to developing our partnership.”