Circle, the issuer of USD Coin stablecoin, on Tuesday said it entered a custody partnership with New York Community Bancorp. Under the agreement, New York Community Bank will become a custodian for USDC stablecoin.
The move is part of Circle Impact, an initiative to improve financial inclusion. It aims at distributing a share of USDC dollar-denominated reserves to Minority-owned Depository Institutions and community banks across the U.S..
Circle Approves New York Community Bank as USDT Custodian
Circle, in a press release, on June 28 revealed signing a partnership with New York Community Bancorp (NYCB) which makes its subsidiary New York Community Bank to become a custodian for USDC reserves. It will further diversify USDC reserves in the leading U.S. financial institutions.
Furthermore, Circle and NYCB will collaborate on new strategies to promote access to low-cost financial solutions. They will cater to underserved and unbanked communities by using Circle blockchain and stablecoin solutions.
USDC stablecoin was made to provide the general public with improved access to crypto. The latest step will help it reach billions of dollars in deposits over time across underrepresented financial institutions.
