• Mon. May 20th, 2024

American Bank Becomes Custodian Of Circle’s USDC Reserves

Jul 1, 2022

According to the latest reports, stablecoin issuer Circle has collaborated with NYCB (New York’s Community Bancorp). Under this agreement, the New York Community Bank, the company’s subsidiary, will act as custodian for the firm’s USDC reserves.

Circle Enters Into Partnership With NYCB 

On the 28th of June, Circle announced its partnership with the NYCB. As per the report, NYCB’s subsidiary will act as custodian for Circle’s stablecoin reserves.

Presently, USDC ranks second in terms of market capitalization for stablecoins. According to CoinMarketCap, its valuation is about $53.9 billion.

In the last 24 hours, the USDC has recorded a trading volume of over $5 billion. Besides, NYCB will also partner with Circle to provide low cost financial assistance to unbanked communities.

Furthermore, the company will offer stablecoin systems and blockchain solutions as part of its strategies. Solutions include allocating USDC dollar-pegged reserves to MDIs (Minority Depository Institutions Program). 

Circle’s chief strategy officer, Dante Disparte, stated that:

“Money will be made more inclusive in the future. To achieve this, we would build connections and partnerships in various communities. This would provide them with financial inclusion. Our partnership with NYCB will make this possible.”

On the 17th of November, 2021, Disparte published a blog post. The post centered on how Circle plans to improve the economic prosperity and financial inclusion.

In addition, the company talked about partnering with MDIs and community banks. It also mentioned the idea of increasing economic prosperity by exchanging financial value. 

Other Financial Institutions That Handle Custodial Services For USDC’s Reserve 

Circle and NYCB’s partnership comes amid Moneygram’s latest USDC crypto-to-cash initiative. Moneygram has launched the program in various markets.

Also, Circle launched the USDC stablecoin on the Polygon network recently. Earlier in June, the company issued another stablecoin pegged 1:1 to the Euro.

Furthermore, NYCB’s executive vice president, Andrew Kaplan, said the bank is proud of the recent partnership. It is also happy to be a custodian of Circle’s USDC reserve. 

“We are among the first US banks to become custodians in the digital space. We are happy to keep custody of the USDC reserves. The bank is ready to partner with the company on education and financial inclusion for our customers,” Kaplan added.

However, NYCB is not the only financial institution Circle has partnered with. Others include BNY Mellon and Blackrock. 

BNY Mellon, the oldest American bank, became a custodian of the USDC in April. Meanwhile, in April, Blackrock became an asset manager of Circle’s stablecoin cash reserves. 

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