Circle plans to apply for U.S. Bank Charter soon and commends OCC for cooperation
Circle Internet Financial Limited said it plans to apply for a US banking charter soon, according to Bloomberg News report.
The crypto-payments company — the issuer of the USDC stablecoin — first talked about a bank charter in 2021, but has yet to file an application with the Office of the Comptroller of the Currency.
Circle’s Banking Dreams
Circle CEO Jeremy Allaire revealed that the company is in talks with regulators on a banking charter and is “making good progress” in that direction.
While many in the crypto community would welcome Circle’s ambition, regulators might not approve such apps outright due to the nature and level of risk involved in the crypto industry.
However, Circle seems indifferent to the regulatory problems that may arise from its application; Instead, Allaire thinks the cordial and firm relationship with regulators will work in his favor.
“They’ve done a lot of work to lay the groundwork for how they’re going to oversee crypto, how they’re going to oversee stablecoin issuers specifically.”
He added that the Office of the Comptroller of the Currency (OCC) is taking a comprehensive approach to the issue.
If approved, Circle will join the other three federally chartered crypto banks in the United States, Anchorage Digital, Paxos Trust Company and Protego Trust NA have all received preliminary approval.
Regulators want banks to be issuers of stablecoins
For Circle, obtaining this approval could prove crucial for its future. US regulators and the Federal Reserve have called for more stablecoin regulations and think that the banks should issue them.
So far, the OCC and Circle have addressed several issues regarding the company’s banking ambitions and blockchain interoperability. This is a salient issue considering the billion-plus hacks involving crypto bridges this year already.
Allaire said the two parties discussed the operational risk assessment of a specific blockchain network. Although the OCC declined to comment on the matter, there is enough interest on its part.