Circle announced that it has started the paperwork to become approved as a federally chartered digital currency bank after seeking a merger with Concord Acquisition Corp on Aug 09. According to the official blog, the well known USDC stable coin issuer has it’s eyes set on a full-reserve national commercial bank. It will ensure compliance with regulations of the Federal Reserve, U.S. Treasury, Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC).
These actions are likely to benefit USDC stable coins by increasing the number of digital dollars in circulation, improving their penetration into the new digital economy and turning them into a necessary component of the new financial system. Circle’s USDC has grown tremendously lately and currently has a market cap of $28.7 billion.
Circle has filed a Registration Statement with the SEC already – the Form S-4 emanating from the Securities Act of 1933, which is required to be submitted to the Securities and Exchange Commission (SEC) before any mergers, acquisitions and exchange offers. This will bide well for the USDC future and it’s credibility / trust value in the crypto ecosystem.
Circle USDC is considered a stablecoin that is pegged to the U.S. dollar on a 1:1 base. Every piece of this cryptocurrency in distribution is supported by $1 that is kept in stock, in a blend of cash and short-term U.S. Treasury bonds. The Centre consortium states that USDC is distributed by supervised economic institutions
