Circle Partners With New York Community Bancorp — Circle revealed on Tuesday that it is partnering with NYCB, the parent company behind the U.S. Bank National Association. In accordance with the announcement, Circle’s well-known stablecoin usd coin will be held in custody reserves by NYCB subsidiary, New York Community Bank.
With a $53.9 billion market capitalization, USDC is now the second largest stablecoin. $5 billion worth of global trade volume was seen by Circle’s USDC stablecoin over the previous 24 hours. To give unbanked communities access to affordable financial options, New York Community Bank will collaborate with Circle as well.
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The companies’ strategies will make use of stablecoin systems and blockchain solution. One possible solution is to give community banks and programs for Minority Depository Institutions (MDIs) USDC dollar-denominated reserves. The chief strategy officer and worldwide policy leader for Circle, Dante Disparte, explained that money will become more inclusive in the future.
Disparte said in a statement that “new alliances and connections at the community level are necessary if we want to make the future of money and payments more inclusive than the past.”
The chief strategy officer for Circle added:
“We are creating new opportunities for community banks and MDIs around the nation to play important roles in the rapidly expanding digital assets market by partnering with NYCB.”
In a blog post published on November 17, 2021, Disparte outlined Circle’s goals to “promote financial inclusion and economic success for all.” The idea of “increasing global economic prosperity through the frictionless interchange of financial value” is discussed, as well as working with community banks and MDIs.
Following Moneygram’s launching of a USDC crypto-to-cash program in specific markets, the two firms have partnered. Additionally, Circle has released a second major stablecoin backed 1:1 by the euro and launched USDC on the Polygon blockchain network.
The financial institution is “proud to be a major digital asset innovator among U.S. banks,” according to NYCB’s executive vice president and chief digital bank and banking as a service officer, Andrew Kaplan.
In addition to serving as a custodian for USDC reserves, Kaplan said, “We are happy that we can work with Circle on important programs that will influence inclusiveness and education for our communities and customers.”
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Circle has also worked with the financial giant Blackrock and BNY Mellon in addition to NYCB. The oldest investment bank in the United States, BNY Mellon, and Blackrock were both identified as “major asset managers of USDC cash reserves” in April.
