NYCB partnership marks Circle’s first custody relationship with a community bank and brings digital financial literacy opportunities to the greater NYCB community
Circle Internet Financial, a global digital financial technology firm and the issuer of USD Coin (USDC), has announced a custody partnership with New York Community Bancorp, Inc. (NYSE: NYCB). Under this agreement, NYCB’s bank subsidiary, New York Community Bank, will become a custodian for USDC reserves. Additionally, the two organizations will work together to create strategies utilizing Circle blockchain and stablecoin solutions to promote access to low-cost financial solutions for underserved and unbanked communities. Additionally, the plan will develop support for Minority-owned Depository Institutions (MDIs) where additional reserves may be held. New York Community is the first community bank approved by Circle to serve as a custodian for USDC reserves.
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The move is part of the company’s commitment to allocate a share of USDC dollar-denominated reserves to MDIs and Community Banks across the country. Announced in November, 2021 as a foundational pillar of Circle Impact, the initiative’s long-term goal is to reach billions of dollars in deposits over time across the footprint of underrepresented financial institutions.
“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 Dante Disparte, Chief Strategy officer and Head of Global Policy for Circle. “By partnering with NYCB, we are opening up new pathways for community banks and MDIs across the country to be key participants in the fast growing digital assets market.”
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“NYCB is proud to be a leading digital asset innovator among U.S. banks,” said Andrew Kaplan, Executive Vice President and Chief Digital Bank and Banking as a Service Officer of New York Community Bancorp, Inc. “We are thrilled that together with being a custodian for USDC reserves, we are also able to partner with Circle on meaningful initiatives to impact inclusion and education to our communities and customers. We look forward to working closely with Circle on this strategy and further enhancing our relationship.”
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