Circle Announces Partnership With New York Community Bancorp

Vignesh Karunanidhi
Circle Announces Partnership With New York Community Bancorp
Source: Ethereum World News

Stablecoin issuer Circle announced a USDC custody partnership with New York Community Bank (NYCB).

Circle had previously announced in March that the primary custodian for USDC is BNY Mellon. Along with their custody relationship, Circle and the NYCB want to work together to make Circle’s stablecoin solutions more accessible to underprivileged and unbanked areas.

The primary aim is to provide support to Minority-owned Depository Institutions (MDI) and community banks to make them part of the custodians of the reserves of USDC. Circle is also aiming to reach deposits in the billions over time.

The two firms will also collaborate to provide low-cost financial solutions to the unbanked communities. New York Community is the first community bank chosen by Circle to act as a custodian for USDC funds.

Source: Phemex

NYCB is not new to stablecoins and blockchain

“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,” said the Chief Strategy Officer of Circle, Dante Disparte.

He also stated that the NYCB partnership will provide new pathways to the community banks and MDIs. This can also assist them to be a part of the growing digital asset realm.

New York Community Bank is not new to the world of stablecoins and blockchain. NYCB had previously invested in Figure technologies that developed Provenance blockchain. The two firms collaboratively have launched USDF Consortium along with JAM FINTOP and four of the community banks.

“NYCB is proud to be a leading digital asset innovator among U.S. banks.”

Andrew Kaplan VP of NYCB

Kaplan stated that the bank is thrilled to be a custodian for USDC reserves. He stated that the firm is happy to collaborate with Circle for meaningful purposes that include the education of customers and communities.

Another stablecoin, the EUROC, is being introduced by Circle which will be tied to the euro. The debut coincides with recent rumors and a decline in trust among stablecoin users as a result of the collapse of UST. Beginning on June 30, traders will have access to the new stablecoin, Euro Coin. Similar to USDC, EUROC will have a reserve that is entirely backed by the euro instead of dollars.