Fresh on the heels of announced plans to go public, Circle said Monday it intends to become "a full-reserve national commercial bank."
If approved, the proposed digital currency bank would operate under the supervision of the Federal Reserve, U.S. Treasury, Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC).
"We are embarking on this journey alongside the efforts of the top U.S. financial regulators, who through the President’s Working Group on Financial Markets are seeking to better manage the risks and opportunities posed by large-scale private-sector dollar digital currencies," Circle said in a blog post.
A Circle spokesperson was not able to immediately answer if any corresponding paperwork has been filed with the federal authorities listed in the announcement. The OCC has not received a charter application from Circle, agency spokesperson Stephanie Collins told CoinDesk via email.
"It warrants research but we do not believe there is a full-reserve commercial bank in the U.S.," a Circle spokesperson told CoinDesk. "We are seeking a full OCC national commercial bank charter. Our business plan does not include fractional reserve lending."
Circle announced last month it had partnered with a special purpose acquisition company (SPAC) to go public later this year. The deal valued Circle at $4.5 billion.
The firm hinted at its banking aspirations in an S-4 form filed late Friday:
UPDATE (Aug. 9, 17:26 UTC): Adds comment from OCC spokesperson.
UPDATE (Aug. 10, 15:48 UTC): Adds comment from Circle spokesperson.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.