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Goldman-backed cryptocurrency firm Circle seeks bank license, SEC registration

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Goldman-backed cryptocurrency firm Circle seeks bank license, SEC registration

Circle Internet Financial Ltd., a cryptocurrency platform backed by Goldman Sachs Group Inc., intends to seek a federal banking license as well as pursue an SEC registration as a brokerage and trading venue, Circle CEO Jeremy Allaire said in an interview with Bloomberg News.

Officials at Circle have had preliminary conversations with the Office of the Comptroller of the Currency to weigh in on banking functions. In its discussions with the OCC, Circle said it would develop standards for acting as a custodian of cryptocurrencies, one of the key challenges for traditional financial firms planning to handle those assets, according to the report.

Circle officials have also been in talks with the SEC and the Financial Industry Regulatory Authority. Allaire said Circle is looking to become an alternative trading system, or ATS, either by applying or by buying a platform that is already acting as an ATS. The company may seek an SEC registration first and a banking license later, the news agency reported.

The OCC and FINRA declined to comment on the development. SEC spokesmen did not respond to Bloomberg's requests for comment.

Circle raised $110 million in its latest funding round in May.

Coinbase Inc., a cryptocurrency trading platform, was also reported to have had talked with regulators for a potential banking license. It recently agreed to acquire three companies as it works on securing regulatory approval to operate as a broker/dealer.