Circle Internet Financial reveals usd coin custodian partnership with American bank holding company New York Community Bancorp (NYCB) The agreement will allow NYCB to provide usd coin custody services to its subsidiary. Under the agreement, New York Community Bank, a subsidiary of NYCB, will be the custodian for its stabled coin reserve.
Circle partners with New York Community Bancorp
On Tuesday, Circle announced that it will work with NYCB, the parent company of U.S. Bank National Association. According to the announcement, New York Community Bank, a subsidiary of NYCB, will hold reserves for Circle’s popular stablecoin USD Coin (USDC).
USDC is currently the second largest stablecoin with a market capitalization of $53.9 billion. In the past 24 hours, Circle’s USDC stablecoin has seen $5 billion in global trading volume. In addition, Community Bank of New York will work with Circle to provide low-cost financial solutions to the unbanked community.
Both companies’ strategies will utilize blockchain solutions and stable coin systems. The solution will involve allocating USDC dollar-denominated reserves to Minority Depository Institution Programs (MDIs) and community banks. Dante Disperte, Circle’s Chief Strategy Officer and Global Policy Director, explained that the money of the future will be more inclusive.
“If we want the money and payments of the future to be more inclusive than in the past, we must build new partnerships and connections at the community level,” said Disparte in a statement.
The Circle’s chief strategy officer added:
By partnering with NYCB, we are paving a new path for community banks and MDIs nationwide to become major participants in the rapidly 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 explaininghow Circle wants to “improve financial inclusion and economic prosperity for all”. The post discusses their work with community banks and MDI and their concept of “increasing global economic prosperity through the frictionless exchange of financial value.”
The partnership with NYCB follows Moneygram’s launch of the USDC crypto-to-cash program in certain markets. Additionally, Circle recently launched USDC on the Polygon blockchain network, issuing
Andrew Kaplan, Executive Vice President and Chief Digital Banking as a Service Officer at NYCB, said the financial institution is “proud to be a leading innovator of digital assets among U.S. banks.” He stated.
“We are thrilled to be the custodian of USDC’s reserves and to partner with Circle on meaningful initiatives that impact inclusion and education for our communities and customers,” Kaplan concluded.
In addition to NYCB, financial giants BlackRock and BNY Mellon have also partnered with Circle. BlackRock was named “the primary asset manager for USDC’s cash reserves,” and BNY Mellon, the oldest investment bank in the U.S., was revealed as USDC’s custodian last April.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Feature photo editorial credit: Alison Nunes Calazans.