Circle Internet Financial announced a partnership for usd coin custody with New York Community Bancorp, an American bank holding company. Under the agreement, NYCB’s subsidiary, New York Community Bank, will become a custodian for the company’s stablecoin reserves.
Circle Partners with New York Community Bancorp
Circle, which is the parent company to the U.S. Bank National Association, announced on Tuesday that it will be collaborating with NYCB. According to the announcement, NYCB’s subsidiary, New York Community Bank, will custody reserves for Circle’s popular stablecoin usd coin (USDC).
USDC has a market capitalization of $53.9 million and is today the second most valuable stablecoin. During the past 24 hours, Circle’s USDC stablecoin has seen $5 billion in global trade volume. New York Community Bank and Circle will collaborate to give unbanked areas access to affordable financial solutions.
The companies’ strategies will leverage blockchain solutions and stablecoin systems. One solution is to allocate USDC-denominated reserve funds to Minority Depository Institutions Programs and Community Banks. Dante Disparte (chief strategy officer and global policy head for Circle) explained that the future money will be more inclusive.
“If we want to make the future of money and payments more inclusive than the past, we have to build new partnerships and connections at the community level,” Disparte remarked in a statement.
Circle’s chief strategy officer added:
NYCB is our partner, opening new avenues for MDIs in communities across the country to participate in the growing digital asset market.
Circle Wants to Improve Financial Inclusion — Blackrock and BNY Mellon Also Handle USDC’s Reserve Management and Custodial Services
On November 17, 2021, Disparte wrote a blog post that explained how Circle wants to “[improve] financial inclusion and economic prosperity for all.” The post discusses working with community banks and MDIs, and the concept of “raising global economic prosperity through the frictionless exchange of financial value.”
Moneygram launched a USDC cryptocurrency-to-cash programme in certain markets. This partnership was announced by NYCB. Circle has also launched USDC using the Polygon Blockchain network, as well as a second stablecoin that’s 1:1 backed by the euro.
Andrew Kaplan, the executive vice president and chief digital bank and banking as a service officer at NYCB said that the financial institution was “proud to be a leading digital asset innovator among U.S. banks.”
“We are thrilled that together with being a custodian for USDC reserves, we are also able to partner with Circle on meaningful initiatives to impact inclusion and education to our communities and customers,” Kaplan concluded.
Circle has also partnered with financial giants Blackrock, BNY Mellon and other big banks. Blackrock was named “a primary asset manager of USDC cash reserves,” and America’s oldest investment bank BNY Mellon was also revealed as a USDC custodian last April.
What do you think about Circle’s partnership with NYCB? Comment below and let us know how you feel about the subject.
Image creditShutterstock. Pixabay. Wiki Commons. Feature photo editorial credit to Alison Nunes Calazans
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