Main to remember
- Circle is looking for a national trustee banking charter to manage its USDC reserves and offer asset custody.
- This decision comes as the Congress advances the legislation on the stable reserve which should be promulgated by President Trump.
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The move of the company follows its IPO of June 5, which gave Circle an initial market capitalization of around 6 billion dollars. Its shares now negotiating at $ 181, the company is currently estimated at around $ 44 billion.
The proposed entity, First National Digital Currency Bank, Na, would allow Circle to keep the USDC reserves directly and to provide digital asset care services to institutional customers, although it does not manage cash or loans.
“The establishment of a National Bank of Digital Currency of this type of brand, an important step with our aim of building a transparent, efficient and accessible internet financial system,” said Jeremy Allaire, co-founder, Circle Chairman.
Blackrock and Bny Mellon currently manage and the USDC reserves of Custody Circle. While the new trust bank would take the management of reserves, Circle intends to maintain relations with large banks for parts of its assets. Allaire indicated that the bank would focus on tokenized shares and bonds rather than digital assets such as bitcoin or ether.
Expansion comes as legislators advance the legislation regulating stablecoins. The bill, which adopted the Senate and which should clean the room this summer, would require stablecoins to maintain the support of liquid assets and provide monthly reserve disclosure. President Trump is expected to sign the measure.
Several brokerage houses have launched a Circle Stock coverage this week, with Barclays, Bernstein and Canaccord issuing bullish notes and price targets above $ 200. JPMorgan and Goldman Sachs expressed concerns concerning the evaluation of the company after the doubling of its post-OPO scholarship course.
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