Circle Internet Financial has revealed a USD money-back partnership with the US banking holding company New York Community Bancorp (NYCB). Under the agreement, NYCB’s subsidiary, New York Community Bank, will become custodian of the company’s stable currency reserves.
Circle Partners With New York Community Bancorp
On Tuesday, Circle announced it is partnering with NYCB, the parent company of the U.S. National Banking Association. According to the announcement, NYCB’s subsidiary, New York Community Bank, will hold reserves for Circle’s popular stablecoin usd currency (USDC).
USDC is the second largest stable currency today with a market capitalization of $ 53.9 billion. Over the past 24 hours, Circle’s USDC stable currency has seen $ 5 billion in global trading volume. New York Community Bank will also work with Circle to provide non-banked communities with access to inexpensive financial solutions.
The companies ’strategies will utilize blockchain solutions and stability systems. Solutions include the allocation of USDC dollar reserves to Minority Depository Institutions Programs (MDI) and community banks. Dante Disparte, the chief strategic officer and head of global policy for Circle, explained that the future of money will be more inclusive.
“If we want to make the future of money and payments more inclusive than the past, we need to build new partnerships and bonds at the community level,” Dispart noted in a statement.
Circle’s chief strategy officer added:
By partnering with NYCB, we are opening up new avenues for community banks and MDIs across the country to be key participants in the rapidly growing digital assets market.
Circle Wants to Improve Financial Inclusion – Blackrock and BNY Mellon Also Handle Reservation Management and Maintenance Services from USDC
On November 17, 2021, Disparte wrote a blog post that explained as Circle wants “[improve] financial inclusion and economic prosperity for all. “The poster discusses working with community banks and MDIs, and the concept of” raising global economic prosperity through the frictionless exchange of financial value. “
The partnership with NYCB follows Moneygram launching a USDC crypto-to-cash program in specific markets. Furthermore, Circle recently launched USDC on the Polygon blockchain network and issued a second major stalemate backed 1: 1 with the euro.
Andrew Kaplan, the executive vice president and chief digital bank and banking officer at NYCB, said the financial institution is “proud to be a leading innovator of digital assets among U.S. banks.”
“We are thrilled that along with being a custodian for USDC reservations, we can also partner with Circle on significant initiatives to influence inclusion and education to our communities and customers,” Kaplan concluded.
In addition to NYCB, the financial giants Blackrock and BNY Mellon have also partnered with Circle. Blackrock was named “chief investment manager of USDC cash reserves”, and the US’s oldest investment bank BNY Mellon was also revealed as a USDC custodian last April.
What do you think of Circle’s partnership with NYCB? Let us know what you think about this topic in the comment section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Main photo editorial credit: Alison Nunes Calazans
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