Circle Officially Obtains Banking License, The First Stablecoin Bank in Human History is Born!
This is a historic moment.
CIRCLE has transformed from a technology company into a part of the U.S. financial infrastructure!
The security of holding USDC is equivalent to holding U.S. dollars.
Institutions, pension funds, and interbank transactions will equate USDC to U.S. dollars.
This is the first stablecoin bank in human history.
Below is a brief explanation to help everyone understand:
- What is the OCC?
The Office of the Comptroller of the Currency, the U.S. currency regulatory agency.
It is one of the "top regulatory officials" in the U.S. banking industry. It is specifically responsible for regulating all "national banks" and federal savings associations. Giants like JPMorgan Chase, Citibank, and Bank of America are all under its jurisdiction.
The OCC issues banking licenses, sets rules, and conducts regular examinations of banks. Obtaining an OCC license means that CIRCLE has officially transitioned from a "fintech internet company" to a part of the U.S. federal banking system, on par with all major banks on Wall Street.
- Direct Impact on CIRCLE
In the past: Dollar reserves had to be held in other banks, and if that bank failed or faced risks, such as Silicon Valley Bank (SVB) in the past, the reserves of USDC could be frozen or even lost, leading to a potential decoupling of USDC.
Now: Circle itself is a bank and can manage the reserves of USDC, safeguarding U.S. Treasury bonds and cash, directly linking its fate with the system without third parties.
The "U.S. content" and security of USDC have reached the theoretical highest level!
- Impact on USDC
In the past: USDC was merely a compliant stablecoin issued by a technology company called Circle, essentially still a "private currency."
Now: After becoming a national trust bank regulated by the OCC, USDC has become a digital dollar operating under the federal regulatory framework.
This further widens the gap between USDC and USDT; USDT is an offshore, unregulated "shadow dollar," while USDC is a "legitimate digital dollar" under the highest level of U.S. federal government regulation.
- What Will Happen
In the past: Pension funds, insurance funds, and large asset management firms wanted to use stablecoins but were limited by compliance requirements and could not entrust their money to an ordinary "technology company."
Now: They can legitimately collaborate with Circle, using USDC for settlement, clearing, or as collateral. This is an exponential benefit for the market value growth of USDC.
- CIRCLE Rises, Tether Falls
Previously, the highly authoritative S&P 500 rating classified USDT as the lowest risk tier, while USDC was rated just below U.S. Treasury bonds, signaling a shift—if re-evaluated today, USDC should rise another tier.
Compliance means clearing the field! As USDC's target market expands from the "crypto circle" to "global financial settlement," USDT holders who are compliant will replace their holdings with USDC. This change has already been occurring recently, as observed from the shifts in market shares, which can be continuously monitored through CMC.
After the stablecoin bill is passed next year, there is over a 90% chance that USDT will be kicked out of the compliant industry according to the bill's requirements, including a decline in USDT on platforms like COINBASE.
Currently, Tether is also promoting its compliant stablecoin in the U.S., but time is not on its side.
(This article will also be included in the stablecoin special section of the Dayu Collection at http://dayu.xyz)
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