Circle, after rejecting Ripple and Coinbase's acquisition bids, now chases major win
On June 30, Circle Internet Group (NYSE: CRCL) applied for a national banking license with the U.S. Office of the Comptroller of the Currency.
With the license, Circle aims to establish a national trust bank, First National Digital Currency Bank, N.A.
If granted, the license would allow Circle to act as a custodian for its own reserves and hold cryptocurrencies on behalf of institutional clients. However, the crypto firm would not be able to offer cash deposit and loan services to its customers under this license.
Founded in 2013, Circle is a crypto company that issues the USDC stablecoin. A stablecoin is a type of cryptocurrency that attempts to stabilize its value, unlike traditionally volatile cryptocurrencies such as Bitcoin.
Pegged 1:1 to the U.S. dollar, USDC is the second-largest stablecoin after Tether's USDT.
As per DeFiLlama, USDC has a market capitalization of $61.21 billion and accounts for around 25% of the total stablecoin market cap of $253.41 billion.
Circle made a blockbuster public debut on the New York Stock Exchange in early June. The oversubscribed initial public offering (IPO) turned it into one of the hottest stocks in the market.
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Circle earlier rejected acquisition bids by two of the leading crypto industry giants, Ripple and Coinbase (Nasdaq: COIN).
Like Circle, Ripple also issues a USD-pegged stablecoin and is similarly seeking a national banking license.
The Senate passed the GENIUS Act that deals with stablecoin regulation on June 17. The scope for further regulatory clarity regarding crypto is encouraging firms like Circle to aim high.
Circle founder and CEO Jeremy Allaire said:
"By applying for a national trust charter, Circle is taking proactive steps to further strengthen our USDC infrastructure."
The CRCL stock was trading at $178.43 at press time, down 7.33% a day.