Key dealers
- Circle is looking for a National Trust Bank -Charter to manage its USDC reserves and offer tokenized access to assets.
- The move comes when Congress promotes the Stablecoin legislation that is expected to be signed by President Trump.
The company’s movement follows its IPO on June 5, which gave Circle an initial market value of approximately $ 6 billion. With its share, which now deals at $ 181, the company is currently valued at about $ 44 billion.
The proposed unit, First National Digital Currency Bank, NA, would allow Circle to directly store USDC reserves and provide digital assets to institutional customers, even if it would not handle cash deposits or lending.
“Establishing a national digital currency management bank of this kind marks a significant milestone in our goal of building a financial system that is transparent, efficient and accessible,” said Circle founder, chairman and CEO Jeremy Allaire in a press release.
Blackrock and Bny Mellon currently handle and Custody Circle USDC reserves. While the new Trust Bank would take over reserve management, Circle intends to maintain relationships with large banks for parts of its holdings. Allaire indicated that the bank would concentrate on tokenized shares and bonds rather than digital assets such as bitcoin or ether.
Enlargement comes when legislators promote legislation that regulates StableCoins. The bill, which passed the Senate and is expected to clear the chamber this summer, would require StableCoins to maintain liquid asset support and provide monthly reserve information. President Trump is expected to sign the action in law.
Several brokers started coverage of Circle Stock this week, with Barclays, Bernstein and Canaccord who issued Haussearted grades and prize goals over $ 200. JPMorgan and Goldman Sachs expressed concern about the company’s valuation after the doubling of the share price.
