The Goldman Sachs backed crypto company Circle is bootstrapping mass adoption right now. Circle developed the popular stablecoin USDC.
Now the company kicked off developments that could disrupt traditional finance.
Circle plans to become a full-reserve national digital currency bank
On Monday evening, the news broke: Circle plans to become a full-reserve national digital currency bank. Therefore, Circle wants to operate under the supervision of the Federal Reserve, the U.S. Treasury, the OCC, and the FDIC.
Circle CEO Jeremy 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. (…) 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.”Circle CEO Jeremy Allaire
Moreover, the Circle CEO estimated that USDC will grow to “hundreds of billions of dollars in circulation.”
There is an enormous difference between fractional-reserve banking and full-reserve banking! When a bank does full-reserve banking, they have to keep the total amount of each depositor’s funds in cash and cash equivalents. That said, their deposits have to be ready for instant withdrawal on demand. Fractional-reserve banking is the exact opposite! So, the bank must not back all deposits by real cash or cash equivalents. So, full-reserve banking tends to be safer!
Circle partners with Unstoppable Domains
Recently, Circle announced a collaboration with Unstoppable Domains. The goal of this collaboration is to offer clients a readable USDC address. So, instead of having a complicated crypto address, people could have an address with their names and .coin at the end of the address. Because of this, USDC addresses would be as easy to read as email addresses today.
Circle filed a registration statement
The crypto company also filed a registration statement on Form S-4 with the SEC. Circle provided a preliminary statement. Besides, it provided a prospectus regarding its planned listing through a merger with blank-check firm Concord Acquisition. A new Irish holding company will acquire both Concord and Circle and become a publicly-traded company. So, it will most likely be listed on the New York Stock Exchange.
Circle is a giant in the crypto industry already and will become even bigger by disrupting traditional finance.
As so often these days: crypto and CeFi are merging. This is precisely the definition of mass adoption – or mass adoption behind the curtain better said!