On the verge of going public, USD Coin (USDC) creator Circle is seeking status as a national digital currency bank, which would operate under the oversight, rules and guidance of the Federal Reserve, U.S. Treasury, Office of the Comptroller of the Currency (OCC) and the FDIC.
The USDC is a digital stablecoin linked to the U.S. dollar.
In a blog post on Monday (Aug. 9), Circle said: “…a new global economic system could be built on an internet-native foundation — open, global and interoperable public internet infrastructure for the storage and transmission of value, and ultimately for the intermediation of capital more broadly.”
The company said that its founding documents looked forward to the time when Circle could create a global digital currency bank. Circle’s mission is to enable frictionless transactions and real-time payments combined with “fiat reserve currencies with open, permissionless blockchains.”
“Over the past eight years, the capabilities of digital currency and blockchain infrastructure have evolved tremendously. Their long-term positive impact on the world has become increasingly palpable, as reflected in heightened engagement with leading financial regulators around the world,” the firm said.
USDC rolled out in 2018, about five years after Boston-headquartered Circle was founded. By teaming up with Coinbase, and via the Centre Consortium, the USDC was developed to align with the U.S. rules and regulations surrounding the transfer of money.
There is an excess of $27.5 billion USDC in circulation, and the company said it feels that its “commitment to trust, transparency and accountability” is a natural fit and the next step in becoming a U.S. federally-chartered national commercial bank.
Circle forecasts that USDC will expand to “hundreds of billions of dollars in circulation” while also supporting trillions “in low-friction, high-trust economic activity.”
USDC reserves come under the rules and regulations that look out for investors and ensure a 1:1 dollar liquidity.
“Establishing national regulatory standards for dollar digital currencies is crucial to enabling the potential of digital currencies in the real economy, including standards for reserve management and composition,” Circle said.