Major Agreement With New York Bank Signed by USDC Parent

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Last Updated on June 28, 2022 by Bitfinsider

The creator of the USD Coin stablecoin, Circle, announced on Tuesday that it had partnered with New York Community Bancorp to provide custody services. According to the deal, New York Community Bank will take on the role of USDC stablecoin’s custodian.

The action is a part of the Circle Impact project, which aims to increase financial inclusion. It proposes to give community banks and minority-owned depository institutions across the U.S. a portion of USDC dollar-denominated reserves.

New York Community Bank receives Circle’s approval as the USDT Custodian

The partnership between Circle and New York Community Bancorp (NYCB), which makes its subsidiary New York Community Bank a custodian for USDC reserves, was announced in a press release on June 28. The top U.S. financial institutions’ USDC reserves will become even more diversified as a result.

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 serve 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 agreement, from the perspective of Circle’s chief strategy officer Dante Disparte, will enable community banks and MDIs gain 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 USDT acceptance in the United States.

Leading U.S. financial firms, such as BlackRock and Bank of New York Mellon, are responsible for the custody of USDC reserves. A community bank will act as a custodian for the first time in this transaction.

Amid Tether Issues, USDC Market Cap Continues to Rise

Investors in cryptocurrencies lost faith in the leading stablecoin due to a rise in redemptions and a decline in Tether’s (USDT) market cap 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 displayed stability amid the cryptocurrency instability was USDC, whereas the other major stablecoins depegged after the Terra-Luna crash.


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Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: Above are some affiliate links and we may collect a share of sales or other compensation from the links on this page.
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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