Digital currency company, Circle has affirmed it’s shift to become a full Reserve- National commercial Bank. The fintech services company is a part of the Centre consortium, the issuer of USD Coin. The company in a blog post released on Sunday stated that it aims to transfer it’s identity as a reserve national bank.
CEO of Circle, Jeremy Allaire declared in the post of the major shift, explaining the path the company would have to undertake to reach their desired goal. He stated that Circle aimed to become a financial institution since it came into existence.
He 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 shift is considered by Allaire due to the USDC factor that is a credible tool in the upcoming future of the crypto market. The CEO announced the necessity of maintaining standards and rules for the digital currencies. He further added, “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.”
Centre is a consortium discovered by Circle and Crypto Exchange, Coinbase reflected the change on Sunday. The blog post written stated these important points.
It said, “Mindful of community sentiment, our commitment to trust and transparency, and an evolving regulatory landscape, Circle, with the support of Centre and Coinbase, has announced that it will now hold the USDC reserve entirely in cash and short duration US Treasuries.” “These changes are being implemented expeditiously and will be reflected in future attestations by Grant Thornton.”