According to Bloomberg, a cryptocurrency startup Circle is attempting to register as a federally licensed bank in the U.S., Bloomberg further mentioned that the Circle is also seeking to register with the Securities and Exchange Commission (SEC) as a brokerage and trading platform.
The Goldman Sachs-backed firm would allow trade crypto tokens if it becomes successful, which is considered as securities in the U.S. and would also help it bypass the complications of registering as a cryptocurrency firm with regulators in all 50 states.
“To hold reserves with the Federal Reserve, … to directly settle with other banks in other markets around the world through those networks – that can improve the efficiency of what we deliver, it can reduce the costs,”
Circle’s CEO Jeremy Allaire stated in an interview.
Circle assumed that they would most likely attempt to seek SEC regulation first before applying for the banking license. Circle’s intention seems to align well with the reported move to finally offer a wide range of digital assets.
Allaire told CoinDesk in October 2017 that
“I think what we would be comfortable saying is that digital assets – which are not just digital currencies, but a broader range of assets – it’s an area that has grown a lot, but that’s not easily accessible to mainstream investors.”
As a back-up to the claim that the Circle made, in February, they obtained the Poloniex exchange to build an exchange service that will offer a host of cryptocurrencies. The firm put down approximately $400 million for the deal, as the sources suggested.
The Circle also closed a $110 million Series E fundraising round in May which the investors noticed as a potential for the firm’s widening scope.