Circle, the second largest stablecoin issuer in the cryptocurrency sector, has taken a remarkable step to deepen its ties with the traditional financial world. The company has officially applied for a national bank license in the US. According to information shared by Reuters, this license will grant Circle the authority to store its own reserve assets and hold cryptocurrency assets in trust for institutional clients.
Circle has made a major application
Circle, the world's second-largest stablecoin company, has taken another step toward integration with the traditional financial system. According to a report by Reuters, the company has officially applied for a national bank license in the US. This move comes shortly after Circle's successful initial public offering (IPO) this month.
Circle Internet Group saw significant interest in its IPO on June 5, when it began trading on the stock exchange under the symbol “CRCL.” The share price was set at $31, and it rose by 167% on its first day of trading. The IPO, which received 25 times more demand than expected, went down in history as one of the most notable IPOs in recent years. The company's stock value is currently hovering around $181, giving Circle a market value of over $40 billion.
The national bank license Circle has applied for is issued by the US Office of the Comptroller of the Currency (OCC). If approved, the company will be able to provide custody services for its own reserve assets and securely hold cryptocurrency assets on behalf of institutional clients. However, the license will not grant the authority to accept cash deposits or issue loans, as is the case with traditional banks. The name of the new unit operating under the OCC has been designated as “First National Digital Currency Bank, N.A.”
Circle, which has been striving to obtain bank status for a long time, had previously denied various claims and stated that it had not applied for a national trust license or industrial bank license. However, this step now indicates Circle's desire to align more closely with the legal framework of the traditional financial world.
Ultimately, Circle's move represents a critical development for institutional investors. At the same time, it could also create a strategic advantage in terms of regulations. Bernstein analysts noted in a report published earlier this week that Circle's USDC stablecoin is likely to become the largest regulated stablecoin under the GENIUS Act. This could give the company a “regulatory first-mover advantage.”
Circle's USDC token currently has a market value of $61.5 billion and is the second most widely used stablecoin in the market.
