The Stablecoin issuer circle has applied to establish a national trust bank in the United States, which, among other duties, will oversee the company’s USDC reserves on behalf of its U.S. issuer.
If the application is approved by the Office of the U.S. Office of the Currency Auditor General (OCC), Circle’s first national digital currency bank will be authorized to operate as a federally regulated trust, Circle Circle explain In a statement on Monday.
Circles Digital Bank also hopes to strengthen infrastructure that “supports USDC’s issuance and issuance” (USDC) and provide Digital Asset Custody Services STABLECOIN issuer added to the institution’s clients.
State Trust Banks cannot accept cash deposits or issue loans. However, they can provide custody services under the supervision of the OCC and operate nationwide without having to apply for an individual state-based currency transmitter license or a specific digital currency license, according to Dave Wright Tremaine, law firm.
Compliance of genius behavior
Circle says Passed the U.S. Senate on June 17 and move to the House, which will face another vote before it can become law.
Circle co-founder and CEO Jeremy Allaire said Circle is taking “positive steps to further strengthen our USDC infrastructure” and “according to emerging U.S. issuance and operations to issue USD-denominated payments Stablecoins.”
OCC’s National Trust Bank application meets a 30-day comment period, usually regulators Decide Approve or refuse within 120 days of receiving the full application.
Other cryptocurrency companies also need eye bank charters
Circle is not the only crypto company that wants to create a national trust bank under the supervision of the OCC.
Eleanor Terrett, Master US cryptocurrency podcast, explain In Monday’s X post, several Other crypto companiesincluding the digital currency wing of financial services giant Fidelity, the country has applied for a national bank charter license from the OCC.
Circle has been considering the banking charter since at least 2022 and named it in the Wall Street Journal Report on April 21 as one of several crypto companies Consider applying for a bank charter or license.
Related: Circle Stock becomes the largest component of Vaneck’s digital asset index
Anchorage Trust Company Becomes The first crypto company to obtain a license Convert to anchored digital banking starting from the OCC in January 2021.
Circle stock trading flat
Circle Internet Group (CRCL) stock leveled at the last trade, up 0.48% to $181, Google Finance Data show. In after-hours trading, the stock fell 1.30% to $178.
After it is made public, the circle inventory Strong entry into the market On June 5, the first trade fair on the New York Stock Exchange climbed 167%.
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