Major US-based crypto finance firm Circle has reportedly revealed details of the plans aimed at turning itself into a full-reserve national cryptocurrency bank across America. 

Specifically, Jeremy Allaire – co-founder and current Head of Circle – reportedly shared that Circle is taking a willing stance to function under the oversight and risk management requirements from the Federal Reserve, the U.S. Treasury, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation.

“We believe that full-reserve banking, built on digital currency technology, can lead to not just a radically more efficient, but also a safer, more resilient financial system,” Allaire reportedly remarked. 

The CEO further claimed that data generated by Circle reportedly suggested a growth equivalent to “hundreds of billions of dollars in circulation” for the stable coin the firm is supporting – USD Coin (USDC). 

The coin will reportedly still provide assistance in economic activity, as well as turning into a preferred solution in financial services and internet commerce applications.

“Establishing national regulatory standards for dollar digital currencies is crucial to enabling the potential of digital currencies in the real economy, including standards for reserve management and composition”. 

The circle is widely perceived as the principal developer behind USDC – currently standing at the 2nd spot in the list of global top major stablecoins by market capitalization, only behind Tether (USDT).

On the contrary to fractional-reserve banking, it is mandatory for full-reserve banking to hold the entire amount of every depositor’s funds in cash and cash equivalents, and available for instant withdrawal upon any request. 

Alternatively referred to as 100% reserve banking, full-reserve banking reportedly offers a different option to a network, in which the backing of actual cash on hand and available for withdrawal is only rolled out for a fraction.