USDC Parent Signs Significant Partnership With New York Bank
USDC Parent Signs Significant Partnership With New York Bank
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The creator of the USD Coin stablecoin, Circle, said on Tuesday that it has partnered with New York Community Bancorp to provide custody services. According to the deal, New York Community Bank will take over the role of USDC stablecoin's custodian.
The endeavour, which strives to enhance financial inclusion, is a component of the Circle Impact initiative. It suggests allocating a share of USDC dollar-denominated reserves to community banks and minority-owned depository institutions throughout the United States.
The partnership between Circle and New York Community Bancorp (NYCB), which makes it's subsidiary New York Community Bank a custodian for USDC reserves, was announced in a press release on June 28. It will increase the diversification of USDC reserves held by the top U.S. financial institutions.
Additionally, Circle and NYCB will work together on fresh approaches to encourage access to affordable financial solutions. By utilizing Circle blockchain and stablecoin solutions, they will assist underserved and unbanked areas.
The USDC stablecoin was developed to give the general public better access to cryptocurrencies. The most recent action will aid in eventually reaching billions of dollars in deposits across financial institutions with low representation.
The partnership, in the opinion of Circle's chief strategy officer Dante Disparte, will enable community banks and MDIs to get access to the expanding market for digital assets.
Since community banks have a wide network across the nation, according to Andrew Kaplan, executive vice president at NYCB, the custodial collaboration will aid in increasing USDC acceptability in the United States.
Leading U.S. financial firms, such as BlackRock and Bank of New York Mellon, are responsible for the safekeeping of USDC reserves. A community bank will act as a custodian for the first time in this transaction.
USDC Market Cap Continues Rising Amid Tether Issues
Investors in cryptocurrencies lost faith in the leading stablecoin due to a rise in redemptions and a decline in Tether's (USDT) market value to $66 billion. Due to concerns regarding the Tether reserves, hedge funds have dumped their USDT holdings.
In the meantime, the value of Circle's USDC stablecoin is rising. The only stablecoin that showed stability amid the cryptocurrency instability was USDC, whereas the other major stablecoins depegged following the Terra-Luna crash.
