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Circle Joins Revolut in Seeking US Banking License

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As we reported yesterday here on Bitrazzi.com, Revolut have announced that they are applying for a US banking license.

Now, it’s Circle’s turn, as the Goldman Sachs-backed exchange looks to take the plunge into the fully regulated world of mainstream banking. Coupled with this, Circle will also be looking to register with the SEC as a brokerage, thereby permitting the sale and exchange of tokens that the SEC deems to be classed as securities.

Circle‘s CEO, Jeremy Allaire, said:

To hold reserves with the Federal Reserve, to natively access the central-banking system without intermediaries, 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.

The move, if sanctioned, would be the first of its type in the US. This follows recent efforts by Circle to expand its services. Only in February this year, it paid a reported $400 million for crypto exchange Poloniex, to expand the number of cryptos it offers. And they only recently held a Series E funding round, which saw over $100 million raised. The round was led by Bitmain, but also included Accel, General Catalyst, Digital Currency Group, IDG, Pantera, Tusk Ventures, Blockchain Capital and Breyer.

Circle are the latest firm to seek such approval in the US. The afore-mentioned Revolut is already in talks, as is Jack Dorsey’s Square. And any green light is likely to cause something of an avalanche, with many more major firms looking to establish themselves in the same way.

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