News

New York Community Bank Will Custody USDC Reserves

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.”

Earlier this spring, Circle announced that BNY Mellon, one of the oldest and largest custodian banks in the U.S., would be the primary custodian for USDC reserves.

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.

The current top ranking of the largest coins as of June 29, 2022. Source: CoinMarketCap

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Solana memecoins crash while DTX Exchange hits 100,000 TPS on layer-1 blockchain

Discover how DTX Exchange's historic achievement of 100,000 transactions per second on a layer-1 blockchain…

39 minutes ago

Strategic Bitcoin Reserve Expected to Cut 35% of US National Debt by 2049

VanEck suggests the U.S. could reduce its national debt by 35% by 2050 through a…

46 minutes ago

The New Lead of Presidential Crypto Council Appointed by Trump Is Bo Hines

President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.

1 hour ago

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

2 hours ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

4 hours ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

4 hours ago

This website uses cookies.