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Analysis: Why Ripple and Circle's Application to Become Banks is So Important
Summary: According to DL News, two major stablecoin issuers in the cryptocurrency field, Ripple and Circle, have applied for a national trust bank charter in the United States. If approved, this move would bring them under federal regulation and closer to the core of the U.S. financial system. Obtaining the charter would subject these companies to ...
According to DL News, two major stablecoin issuers in the cryptocurrency field, Ripple and Circle, have applied for a national trust bank charter in the United States. If approved, this move would bring them under federal regulation and closer to the core of the U.S. financial system. Obtaining the charter would subject these companies to oversight by the Office of the Comptroller of the Currency (OCC), requiring them to adhere to the same capital, liquidity, and risk standards as traditional banks. Chris Coulson, a payment expert at the Atlanta Federal Reserve Bank, emphasized the significance of this for the cryptocurrency industry, indicating that stablecoins are truly entering the financial mainstream. Additionally, obtaining a bank charter means these companies can act as custodians under federal regulation, hold stablecoin reserves, and potentially access the Federal Reserve's real-time payment system. He highlighted that 'Circle and Ripple's move blurs the line between financial technology and traditional banking operations,' posing significant competition to existing banks.
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Link: Analysis: Why Ripple and Circle's Application to Become Banks is So Important [Copy]
