Circle Announces Plans to Become National Digital Currency Bank
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Circle wants to become a national commercial bank, operating under the supervision and risk management requirements of the financial watchdogs. While the details for such to achieve such a milestone remain unclear, Circle CEO Jeremy Allaire emphasized in an announcement that the company has already expanded audit attestations to include details on the composition of USDC reserves, including the credit quality of the underlying assets.

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"As we move towards national bank-level regulatory supervision we will begin to publish information about the fundamental liquidity of USDC and our liquidity coverage under Basel III," he added.

As per Basel III requirements, financial institutions are obliged to maintain sufficient High Quality Liquid Assets (HQLAs) to ensure they can meet the liquidity demands of such a stress situation. The Circle CEO also added that the company behind the USD coin (USDC) stablecoin will collaborate with national regulatory counterparts on the "ultimate commercial adoption of new dollar digital currency standards."

Circle Brings USDC Stablecoin on TRON Blockchain

Circle's move comes after the company announced it plans to go public via a business combination with Concord Acquisition Corp. The Boston-based fintech company said that as part of the agreement a new Irish holding company will acquire both Concord and Circle and become a publicly-traded company.

Earlier this year, Circle raised $440 million in a funding round from Fidelity Management and Research Company, Marshall Wace, Willett Advisors, Digital Currency Group, FTX, and many others.

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