Circle, a digital payments company with strong support from banking giant Goldman Sachs, has officially announced plans to become a national bank with full reserves. The entire project should be overseen by the Fed, the US Treasury Department, the OCC and the FDIC.
Circle is experiencing a boom
This interesting report was delivered by Circle CEO Jeremy Allaire.
“We believe that full-reserve banking, which is based on digital currency technology, can lead to a more radical, efficient, secure and resilient financial system.”
Jeremy Allaire expects that this process will also significantly affect the stablecoin USDC, which should grow by hundreds of billions of USD. In Circle’s upcoming plans, USDC stablecoins rank first. The plan is clear. The USDC will become a unit in financial services.
“The introduction of national regulatory standards for dollar digital currencies is key to harnessing the potential of digital currencies in the real economy, including the composition of reserves.”
According to market capitalization, USDC is still the second largest stablecoin after USDT. At the time of writing, USDC was ranked 8th on the CoinmarketCap site with a market value of approximately $ 27.8 billion.
Will Circle become the National Bank?
Full reserve banking essentially requires banks to hold the full amount of each investor’s funds. It is an excellent alternative to a system in which only a fraction of bank deposits are covered by real cash. Based on the latest fundamentals and results of this company, it is highly probable that this project will reach its final form.
