Hassan Maishera
TL;DR
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The Wall Street Journal revealed that Circle and BitGo are set to apply for bank charters.
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The report added that Coinbase and Paxos are considering following suit.
Crypto Companies to Apply for U.S. Bank Charters and Licenses
Several cryptocurrency companies, including stablecoin issuer Circle and trust company BitGo, intend to apply for U.S. bank charters and licenses. This is according to a new report by The Wall Street Journal.
According to the report, Coinbase and Paxos are also planning similar moves. WSJ added that some crypto firms are going for narrow licenses that would allow them to issue stablecoins. Firms that secure such licenses would be subject to stricter regulation and oversight.
Cryptocurrency companies continue to struggle to access traditional financial infrastructure. Last year, Custodia Bank was denied access to a Federal Reserve master account. If Circle and BitGo obtain the bank charter license, it would be a big win for the broader crypto market as it would enable crypto firms to gain access to the traditional financial ecosystem.
