Ana Sullivan

Circle – Will It Be The First CryptoCurrency Bank?

by Ana Sullivan June 6, 2018

The CryptoCurrency startup Circle has been reported to look for a banking license in the United States. The company, which is backed by Goldman Sachs aims to provide a cryptocurrency wallet as well as an investment platform and an OTC crypto trading service. It’s goal is to register with the SEC commission as an official broker as well as a trading platform. If this proves successful, it basically means that the world is going to have it’s first crypto tokens-based banking institution – quite the move, considering tha the U.S. is currently calling cryptocurrencies securities.

 

Circle As a Bank - How Can It Be Possible?

The CEO of Circle, Jeremy Allaire, was quoted to claim that this move may allow to directy centralize the regulation of cryptocurrencies. Currently such regulations need the approval on 50 states for a cryptocurrency to pass, but this may reduce costs and make it possible to further adapt cryptocurrencies into Wall Street. This move may be very important for Circle as they offer various different types of digital assets for trading. And when talk about digital assets, we are also likely talking about tokens, services and many other virtual objects or activities that are paid. To further make themselves trustworthy and well developed, the Circle foundation also acquired the Poloniex exchange in order to gain territory in the exchange services for further expansion and developments. With this much interest and an over $100 million fundraising which was completed back in May, the company is surely attracting bigger and bigger names in the blockchain industry, among which are Digital Currency Group, General Catalyst, IDG, Pantera and Trust Ventures.

Furthermore, Coindesk have also cited a report by Bloomberg which claimed that if Circle does receive a banking licence, the company can also register in the Securities and Exchange Commission (SEC) as a license broker firm. This can effectively allow to trade cryptocurrencies much easier and will also contribute to the stability of the firm, given they receive a banking license eventually.

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