Why does the Stablecoin Issuer Circle want to be a bank

circle (CRCLShe said in a late press announcement on Monday that Stablecoin’s source had officially submitted an application with the Currency Financial Office (OCC) to obtain a National Charter at Al -Thiqa Bank.

If the National Bank organizer grants the approval of the department, it plans to increase a national bank called First National Currency Bank, then such a charter will allow the coding company to custody, reserve asset management behind its Stablecoins and provide other credit services.

“The establishment of a national bank confidence in this type represents a great milestone in our goal in building a transparent, effective and accessible internet system,” Jeremy Aller, CEO of Serkel said in a statement.

Reuters was the first to a report This development.

This step will allow the department, which witnessed its shares, will rise after the last public subscription, to manage the reserve assets of the Stablecoins it issues, thus enhancing the company’s competitive position. It will also be achieved from the box to obtain requirements that are expected to meet all Stablecoin exporters in the United States under relevant legislation.

Only one of the other encryption company, Anchorage Digital, has such a license. Current, Circle reserves are being held by New York Mellon Bank (BkBlackrock (BLK).

The shares of the circle opened 2 % less on Tuesday. It rose 470 % of the subscription price of June 5 of $ 31.

President Donald Trump promised to make America “the capital of encryption in the world” and since it included his position, the encryption world has witnessed a flood of doors open to the prevailing financing.

No other corner of the industry has yet attracted a lot of attention from Wall Street Karak Corkel, the Stablecoin market of $ 253 billion.

From the banks of Wall Street like Jpmorgan Chase (JpmAnd Bank of America (Pile) To the credit card visa (giants)Fifth) And MasterCard (M), Fintech companies, and even major technology companies, a group of American companies restore stablecoin strategies before the first American Stablecoin legislation ever was approved later this year.

Unlike other encrypted currencies, the Stablecoins value does not aim to volatility. Instead, they work as a safe haven for investors who are waiting for encryption fluctuations and in this way it is seen as a potential Gamechanger game in the world of payments across the border.

In practice, Stablecoins is managed as money market boxes, where all users for each dollar must allocate assets in the reserve.

The Stablecoin Bill, known as The Genus, is known for setting standards for how American banks and other financial companies provide Stablecoins and how they will need to manage their reserves in cash and treasury of the United States. It will also be required to exporters with a certain size supervised by OCC, which opens the Stablecoin market to a wide range of players.