Circle Seeks US Banking License for USDC Reserves

Circle Internet Group, identified by the ticker CRCL, has officially applied for a national banking license in the United States, as reported by Reuters. This step is part of Circle's strategy to integrate further into the traditional financial system, following its successful initial public offering earlier this month. The sought-after license from the U.S. Office of the Comptroller of the Currency would allow Circle to hold its reserves and manage crypto assets for institutional clients. However, it would not equate to taking cash deposits or issuing loans like conventional banks. Circle aims to operate as First National Digital Currency Bank, N.A. The company's ongoing efforts to secure a U.S. bank charter could eventually permit it to offer standard banking services such as loan issuance and deposit-taking, although it previously denied pursuing a trust or industrial bank charter. Circle debuted its public offering on June 5 with significant success, witnessing a price surge and substantial investor interest. Analysts at Bernstein anticipate that Circle’s USDC could become the largest regulated stablecoin as a result of the GENIUS Act, granting it a regulatory advantage. USDC currently holds a market cap of $61.5 billion, with Circle’s stock recently valued at $181.29 a share, attributing a market cap exceeding $40 billion to the company. The Block, a media outlet accessing comprehensive news about the cryptocurrency sector, has disclosed its financial affiliations while maintaining editorial independence.