NY Community Bancorp to Be Custodian of Circle’s USDC Reserves

Circle Internet Financial, which issues the stablecoin USD Coin, or USDC, Tuesday (June 28) announced a custody agreement under which New York Community Bancorp will serve as a custodian for USDC reserves.

The companies also announced they will collaborate on developing blockchain systems to serve people that are underbanked. Some reserves also might be steered to minority-owned banks.

Circle said in the announcement that the new arrangement reflects a company commitment to place some custody assets with community banks and minority-owned banks.

“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,” Dante Disparte, chief strategy officer and head of global policy for Circle, said in a prepared statement. “By partnering with NYCB, we are opening up new pathways for community banks and (minority-owned banks) across the country to be key participants in the fast growing digital assets market.”

See also: Circle Debuts Euro Stablecoin

Circle issues USDC in conjunction with the parent company of crypto exchange Coinbase.

On June 16, Circle announced it was issuing a new stablecoin pegged to the euro. The EUROC would make it easier for EU residents to enter the cryptocurrency space, while opening opportunities for cross-border payments and remittances.

“The launch of Euro Coin aims to further Circle’s successful work in driving the frictionless exchange of financial value and bridging crypto-native and traditional financial services,” Circle CEO Jeremy Allaire said in a prepared statement at the time. “Businesses can use EUROC tokens to easily move euro liquidity on-chain, accept and make euro payments globally that can settle in minutes, and access crypto capital markets for trading, borrowing, lending and more.”

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