Circle Inks Strategy Partnership with Bancorp for USDC Custody
Godfrey Benjamin Jun 29, 2022 02:55
Circle Internet Financials LLC, the blockchain company responsible for the issuance of the USDC stablecoin, has announced its latest partnership with New York Community Bank (NYCB).
Circle Internet Financials LLC, the blockchain company responsible for issuing the USDC stablecoin, has announced its latest partnership with New York Community Bank (NYCB), a publicly listed New York Community Bancorp subsidiary Inc.
The partnership is coming days after Circle floated its first Euro-backed stablecoin.
Through the partnership, Circle will rely on NYCB as one of the custody providers for its stablecoin reserves. Ranked as the very first community bank that Circle will be partnering with in this regard, the overall move aligns with Circle’s plans to support underrepresented financial institutions across the country.
“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,” said Dante Disparte, Chief Strategy Officer and Head of Global Policy for Circle, adding that “by partnering with NYCB, we are opening up new pathways for community banks and MDIs across the country to be key participants in the fast-growing digital assets market.”
The duo of Circle and New York Community Bank will also explore tailored strategies that will help underrepresented individuals to access cheap financial technologies through Circle Blockchain and the USDC stablecoin.
Stablecoins have occupied a very pivotal position in the financial emancipation of developed economies, including the United States. Serving as the fiat currency in the nascent crypto ecosystem, Circle’s USDC is the second-largest stablecoin after Tether (USDT).
As of the time of writing, the market capitalization of USDC was pegged at $55.82 billion, which implies it has exactly the same amount in cash reserves kept with financial institutions all over. With NYCB now amongst its partners, it is bound to get a share of the stored reserves per the terms of this new partnership.
The link-up will also push for digital financial literacy education and opportunities in the greater New York Community Bank world.
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