Circle Pursues Major Milestone After Declining Acquisition Offers

On June 30, Circle Internet Group (NYSE: CRCL) applied for a National Bank License from the Secretary of the Currency.

If granted, this license would allow Circle to set up the NATION NATIONAL DIGITAL CURRENCY BANK, NA, NATHILLY TRUST BANK. It’s an ambitious project. Essentially, the license would enable Circle to manage its own reserves and hold cryptocurrency for its clients. However, it wouldn’t allow the company to offer cash deposits or loan services.

Founded in 2013, Circle is known for issuing the USDC Stablecoin. This type of cryptocurrency aims to stabilize its value, which makes it quite different from more volatile options like Bitcoin.

The USDC is pegged 1:1 to the US dollar, placing it as the second largest stablecoin after tethered USDT. According to DeFiLlama, USDC’s market capitalization stands at $61.2 billion, which is about 25% of the total cryptocurrency market capitalization of $25.341 billion.

Circle recently made a splash with its IPO in early June, which was oversubscribed and quickly became one of the hottest stocks around.

Circle had previously turned down buyout offers from prominent crypto firms Ripple and Coinbase (NASDAQ:COIN). Interestingly, Ripple is also working on its own USD-backed stablecoin and is seeking a national banking license as well.

The Senate advanced the Genius Act on June 17, which pertains to regulations surrounding stablecoins. This regulatory landscape seems to be driving entities like Circle to strive for greater achievements.

“We’re committed to providing a range of services to our customers,” stated Jeremy Allaire, Circle’s founder and CEO. “By applying for the National Trust Charter, Circle is taking proactive steps to further strengthen its USDC infrastructure.”

At the time of reporting, CRCL shares were trading at $178.43, reflecting a decrease of 7.33% for the day.