Goldman Sachs-backed digital payment visitor Circumvolve has officially disclosed plans to become a full-reserve national digital currency bank in the United States.

Announcing the news on Monday, Circle co-founder and CEO Jeremy Allaire noted that Circle is willing to operate under the supervision and take chances management requirements of the Federal Reserve, the U.S. Treasury, the Role of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.

"We believe that full-reserve banking, built on digital currency technology, tin lead to not just a radically more efficient, merely also a safer, more resilient financial organisation," Allaire stated.

The CEO added that Circle anticipates the company'southward stablecoin, USD Money (USDC), will abound to "hundreds of billions of dollars in circulation," standing to support loftier-trust economical activeness and becoming a pop tool 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 limerick," Allaire added.

Circle is known as the principal developer of USDC, the world's second-largest stablecoin by market capitalization later Tether (USDT). At the time of publication, USDC is the eighth largest cryptocurrency with a market place value of $27.8 billion, while USDT holds virtually a $63 billion market cap, co-ordinate to information from CoinGecko.

In contrast to fractional-reserve banking, total-reserve banking requires banks to keep the full corporeality of each depositor's funds in cash and cash equivalents, ready for instant withdrawal on demand. Also known as 100% reserve banking, total-reserve banking provides an alternative to a system in which just a fraction of bank deposits are backed by actual cash on hand and bachelor for withdrawal.

Related: Jeremy Allaire: 'USDC is halfway to flipping PayPal'

The news comes presently later on Circle filed a registration argument on Form S-4 with the U.Due south. Securities and Exchange Commission, providing a preliminary argument and prospectus regarding its planned listing through a merger with blank-check house Hold Acquisition. Under the terms of the agreement, a new Irish holding company will acquire both Concord and Circle and become a publicly traded company that is expected to be listed on the New York Stock Exchange.