New York Community Bank (NYCB), a New York-based community bank with branches in New Jersey, Florida, and Ohio, will act as custodians for some project assets collateral storage behind the stablecoin USD (USDC) of Circle.
In addition, the two companies will also work on low-cost financial solutions for underserved and unbanked communities. The partnership is part of Circle’s efforts to bring underrepresented financial institutions into the cryptocurrency market and allocate a portion of its reserves to minority-owned depository institutions (MDI).
Dante Disparte, Circle’s Chief Strategy Officer and Head of Global Policy said:
“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.”
NYCB is a relatively small bank, managing $61 billion in assets, according to its website. By comparison, BNY Mellon’s assets under custody amount to $45 trillion.
USDC has distinguished itself from other stablecoin competitors by establishing closer relationships with traditional banks and has always been extremely cautious in its choice of reserve assets, holding only cash in USD and US government bonds.
USDC is the second-largest stablecoin after Tether’s USDT with a circulating supply of $55.8 billion. It has taken market share from USDT since the implosion of the Terra blockchain.
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