Crypto Startup Circle to Seek Banking License in US

Cryptocurrency startup Circle is seeking to register as a federally licensed bank in the U.S., according to Bloomberg.

In a report published Wednesday, Bloomberg said that alongside the banking license, Circle - which offers a cryptocurrency wallet and investment platform, as well as an OTC crypto trading service - would also seek to register with the Securities and Exchange Commission as a brokerage and trading platform.

The move from the Goldman Sachs-backed firm, if successful, would allow it to trade crypto tokens that are considered as securities in the U.S. and would also help it circumvent the complexities of registering as a cryptocurrency firm with regulators in all 50 states.

"You're able to have a single conversation," Circle's chief compliance officer, Robert Bench, told Bloomberg.

Following early talks with the Office of the Comptroller of the Currency over the banking registration, as well as with the SEC and the Financial Industry Regulatory Authority, Circles said it would likely seek SEC regulation before moving to apply for the banking license, according to the report.

The ambitious move would seem to align well with Circle's notable aim, as reported by CoinDesk in October 2017, to eventually offer a wide range of digital assets.

Further supporting that aim, Circle acquired the Poloniex exchange in February to build an exchange service that will ultimately offer a host of cryptocurrencies.

Sources suggested at the time that the firm put down roughly $400 million for the deal.

Investors are also seeing potential in the firm's widening scope, with Circle closing a $110 million Series E fundraising round in May. Led by China-based mining firm Bitmain, the round saw participation from Accel, Blockchain Capital, Breyer, Digital Currency Group, General Catalyst, IDG, Pantera and Tusk Ventures.

CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.