According to a statement from CEO Jeremy Allaire, Circle Financial, issuer of the stablecoin USDC, has announced that its previous payment partner, Signature Bank partner with Cross River Bank after it was shut down by New York regulators.” Allaire emphasized, “The 1:1 redeemability of all USDCs in circulation is of utmost importance to Circle.
Crypto firm scrambles for new banking partners in the US
Circle Financial announced a new banking partner over the weekend as its stablecoin, usd coin (USDC), broke away from the U.S. dollar, CEO Jeremy Allairesaid in a statement Sunday eveningMore than $3 billion in funds that had been languishing at Silicon Valley Bank (SVB) will be accessible thanks to the federal bailout announced by the U.S. central bank and the Treasury Department.USDC, approximately 45 minutes after the Federal Reserve announced that it would bail out all depositors of SVB and Signature Bank, announced that it would USDC regained parity with the US dollar, or very close to it, about 45 minutes after the Federal Reserve announced it would bail out all depositors of SVB and Signature Bank.
Circle CEO Jeremy Allaire announced that the company is working with new banking partners and that Circle’s USDC operations will open for business Monday morning with a new automated settlement via Cross River Bank. Despite the closures of Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank, several US crypto businesses still have banking partners, according toLarry Cermak, head of research and data at The Block. He noted that there are very few so-called crypto-friendly banks available today.
Cermaklisted several banksthat are considered friendly to the crypto industry, including Customers Bank, First Foundation Bank, Sutton Bank, Evolve Bank&Trust, Bankprov, Quontic Bank, and Cross River Bank. Coinbase, a popular crypto exchange, is also rumoredto be using Cross River Bank as a banking partner. However, things are not going well for everyone, as Okcoin’s U.S. exchange has had tosuspendU.S. dollar deposits and over-the-counter services were suspended due to problems at Signature Bank, formerly the main U.S. dollar bank; Okcoin president Hong Fang confirmed the suspension and explained that the exchange is working to find a new banking partner.
Okcoin suspended ACH and wire transfers in US dollars, but Okcoin president Hong Fang assured that “all company and customer funds are safe.” The scramble by crypto firms for new banking partners comes after the Federal Deposit Insurance Corporation (FDIC) transformed Signature Bank and Silicon Valley Bank (SVB) into bridge banks. On Monday morning, U.S. President Joe Bidenreassured the publicthat America’s “banking system is safe” and “your deposits will be there when you need them.”
Meanwhile, according to reports, trading ha
