Stablecoin issuer Circle has announced a USDC custody partnership with New York Community Bank (NYCB).
Circle had previously announced in March that BNY Mellon is the primary custodian for USDC. In addition to their guardianship relationship, Circle and the NYCB are looking to work together to make Circle’s stablecoin solutions more accessible to underprivileged and non-banking areas.
Its primary purpose is to support minority-owned depositories (MDI) and community banks so that they become part of USDC’s reserves custodians. Circle also aims to deposit billions over time.
The two companies will also work together 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.
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 need to build new partnerships and community-level connections,” said Dante Disparte, the Circle’s chief strategy officer.
He also stated that the NYCB partnership will provide new avenues for community banks and MDIs. This can also help them become a part of the growing digital asset empire.
New York Community Bank is not new to the world of stablecoins and blockchain. NYCB had previously invested in Figure technologies developing Provenance blockchain. The two companies, along with JAM FINTOP and four of the community banks, have jointly launched the USDF consortium.
“NYCB is proud to be a leading digital asset innovator among US banks.”
Andrew Kaplan VP of NYCB
Kaplan stated that the bank is pleased to be a custodian for USDC reserves. I have stated that the company enjoys working with Circle for meaningful purposes, including educating customers and communities.
Another stablecoin, the EUROC, is being introduced by Circle which will be pegged to the euro. The debut coincides with recent rumors and a decline in confidence among stablecoin users due to the collapse of UST. From June 30, traders will have access to the new stablecoin, Euro Coin. Like USDC, EUROC will have a reserve fully backed by the euro rather than dollars.