NY Community Bancorp will be the Custodian of the USDC Reserve
Circle Internet Financial, which issues the stablecoin USD Coin, or USDC, announced a custodial agreement on Tuesday (June 28) under which New York Community Bancorp will serve as the depository for USDC reserves.
The companies also announced that they would collaborate in the development of blockchain systems to serve the underbanked. Some reserves could also be directed to minority-owned banks.
Circle said in the announcement that the new agreement reflects the company’s commitment to place certain assets on deposit with community banks and minority-owned banks.
“If we want to make the future of money and payments more inclusive than the past, we need to build new partnerships and connections at the community level,” said Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle, in a prepared statement. statement. “By partnering with NYCB, we are opening new avenues for community banks and (minority-owned banks) across the country to become key players in the rapidly growing digital asset market.”
See also: Circle Launches Euro Stablecoin
Circle issues USDC in conjunction with crypto exchange parent company Coinbase.
On June 16, Circle announced the issuance of a new euro-pegged stablecoin. EUROC would make it easier for EU residents to access the cryptocurrency space, while opening up opportunities for cross-border payments and remittances.
“The launch of Euro Coin aims to continue Circle’s successful work in fostering the frictionless exchange of financial value and connecting crypto-native and traditional financial services,” Circle CEO Jeremy Allaire said in a statement. press release prepared at the time. “Companies can use EUROC tokens to easily transfer euro liquidity on-chain, accept and make global euro payments that can be settled in minutes, and access crypto capital markets for exchanges, borrowings, loans and more.”