USD Coin stablecoin which is controlled by Circle revealed that it has concluded a deal with New York Community Bancorp. The Bank will become the custodian of USDC stablecoin.
The latest move comes under the purview of Circle Impact which is an initiative which seeks to improve financial inclusion. In other words Circle seeks to become a part of the present financial regimen. It strives to spread evenly the share of USDC dollar dominated reserves to Minority-owned Depository Institutions and community banks across the U.S.
Circle Deems New York Community Bank USDC Custodian
Details of the agreement were revealed by Circle in a press release dated June 28. The PR detailed that New York Community Bancorp (NYCB) has become the custodian for USDC reserves. It will help further expand the reach of USDC reserves in the leading U.S. financial institutions.
Circle and NYCB partnership will also usher the development of new strategies which will facilitate access to more economical low-cost financial solutions. The deal is also being touted as a drive to provide banking services to unbanked communities by using Circle blockchain and stablecoin solutions.
The USDC stable coin aims to make the access of the common public to crypto asset much easier. The latest move will enable billions of dollars in deposits to those sections of the society which is least developed and devoid of banking services
These sentiments were echoed by Dante Disparte, chief strategy officer of Circle and he said such partnerships will help connect community with community banks and MDIs to the growing digital assets market.
He added, “If we want to make the future of money and payments more inclusive than the past, we have to build new partnerships and connections at the community level.”