Circle granted permission to form a bank
On July 10th the USA OCC (U.S. Office of the Comptroller of the Currency) granted Circle National Trust to be created under Circle National Trust.
OCC granted Circle the permission to form a bank, well not that kind of bank. They can't provide FDIC-insured retail banking services. Nor accept ordinary deposits, nor make loans, nor offer checking or savings accounts. I'm glad we know what they can't do.
What can they do?
will provide fiduciary digital-asset custody for Circle and its affiliates under direct OCC supervision. Which allows Circle to bring custody, and possibly reserve management, under one roof instead of relying as heavily on outside firms.
This does not influence USDC?
It does not automatically deepen USDC liquidity or place the token in more wallets, exchanges and payment products.
For the record their official name will be
First National Digital Currency Bank, N.A.
Summary
Lots of fan fare for a Crypto Bank, however, not your historical deposit-taking and lending power "bank.” It will be fun to see what type of power and political waves are created across the traditional banking sector. Will be interesting to follow this 'bank' to see how it develops or fails.
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