This would bring a set of responsibilities and duties to the company equal to those of other mainstream banks: having to report to the Federal Reserve, U.S. Treasury, OCC, and the FDIC. However, it would also put the company in a unique position to link blockchain and traditional finance.

Circle Aiming to Become Full-Reserve Bank

Circle, a cryptocurrency fintech services company part of the Centre consortium, the issuer of USD Coin, has revealed in a blog post yesterday it intends to become a full-reserve national commercial bank. The announcement was made by its CEO Jeremy Allaire in a post where he explains the journey the company will have to undergo to reach that goal. Allaire stated that, since its inception, Circle has intended to become a financial institution.

And now that its flagship stablecoin, USD Coin, has reached a critical issuance mass of more than $27 billion dollars, it's time to take things a step forward. Allaire stated:

"We believe that full-reserve banking, built on digital currency technology, can lead to not just a radically more efficient, but also a safer, more resilient financial system."

The company is embarking on this new journey because it anticipates a boom in the growth of USDC that will ostensibly be a crucial asset in the future of the cryptocurrency market. Allaire state that it is important to establish standards for these currencies. He stated:

"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."