Ace quick missions & earn crypto rewards while gaining real-world Web3 skills. Participate Now! 🔥
Key Takeaways
Ace quick missions & earn crypto rewards while gaining real-world Web3 skills. Participate Now! 🔥
Circle, the company behind the USDC
The decision would enable the firm to directly manage the reserves backing USDC and operate under the supervision of a single federal regulator, the Office of the Comptroller of the Currency (OCC).
If the OCC approves the plan, Circle would launch First National Digital Currency Bank, NA, a federally regulated trust company. Unlike traditional banks, this type of institution cannot make loans or take cash deposits, according to a report by Reuters.
Did you know?
Subscribe - We publish new crypto explainer videos every week!
How to Trade NFTs Safely? (Animated Explainer For Beginners)
Instead, it focuses on storing and protecting assets, such as the dollar reserves tied to USDC. The trust bank would also be able to provide custody services to large clients, including other financial institutions.
Circle said this new setup would help it meet the requirements of the GENIUS Act, a stablecoin regulation bill that recently passed in the US Senate and is being considered in the House of Representatives.
In a statement, Circle’s co-founder and CEO, Jeremy Allaire, said the company is working to strengthen the foundation of USDC. He explained that the trust bank would support Circle’s efforts to build a digital financial system that is open, reliable, and follows US regulations.
Allaire added that this decision could help expand the use of the dollar globally by giving institutions more secure ways to use stablecoins.
Meanwhile, the Bank of Korea (BOK) recently called for a slow and controlled introduction of stablecoins in the country. What did Deputy Governor Ryoo Sang-dae say? Read the full story.
To ensure the highest level of accuracy & most up-to-date information, BitDegree.org is regularly audited & fact-checked by following strict editorial guidelines & review methodology.
Carefully selected industry experts contribute their real-life experience & expertise to BitDegree's content. Our extensive Web3 Expert Network is compiled of professionals from leading companies, research organizations and academia.