1 year ago
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Partnership with Citizens Trust Bank
Circle, which issues US dollar-linked stablecoin USDC, has announced a partnership with Citizens Trust Bank, a major minority-owned bank based in Atlanta. The bank will hold about 8.9 billion yen ($65 million) as part of USDC’s reserves.
In addition, Circle and Citizens Trust Bank will also work on financial inclusion and digital financial literacy in the Atlanta area of the United States. Circle plans to launch the program this summer through Atlanta’s Historically Black College (HBCU) and local schools, with Circle providing approximately 13.6 million yen ($100,000) in funding.
HBCU is a general term for institutions of higher education established mainly after the Civil War (1861-1865) for the purpose of educating African-American students. Past alumni include civil rights activist Martin Luther King, Jr., author Toni Morrison, as well as doctors, lawyers, engineers, and others who are active in various fields.
“For the future of finance and banking to be more inclusive than in the past, historically marginalized communities are the beneficiaries of financial services,” said Dante Disparte, Circle’s chief strategy officer. You have to be the protagonist, not just the one.”
Cynthia N. Day, President and CEO of Citizens Trust Bank, explained:
The opportunity to take a portion of Circle’s USDC reserves strengthens our balance sheet and positions us as an important part of a rapidly growing new market.
We are committed to providing access to capital for SMEs, improving the financial ecosystem through financial inclusion and making local communities stronger. This partnership supports this.
Citizens Trust Bank is classified by the Federal Deposit Insurance Corporation (FDIC) as a minority-owned depository institution (MDI). MDIs are banks primarily owned and operated by African Americans, Asian Americans, Hispanic Americans, and Native Americans.
Government agencies such as the FDIC are required to preserve existing MDIs and encourage the establishment of new MDIs.
What is a stablecoin
A cryptocurrency whose price is always stable. Stablecoins are a type of cryptocurrency, and unlike BTC, ETH, and XRP, which have volatility, their purpose is to maintain their value ($1) backed by the US dollar. In addition to US dollar-backed stablecoins (USDT/USDC), there are also stablecoins that use algorithms.
Cryptocurrency Glossary
Disclose reserve status
In an attempt to increase transparency, Circle publishes a monthly report certifying that it has at least as much dollar-denominated reserves as USDC in circulation.
In addition to Citizens Trust Bank, Circle also holds reserves at Bank of New York Mellon, Customers Bank, New York Community Bank, Signature Bank, Silicon Valley Bank and Silvergate Bank. I’m in the middle of the day.
As of December, the total USDC reserves totaled approximately ¥6 trillion (approximately $44.7 billion), all of which was deposited in the form of cash or short-term US Treasury bills with major US financial institutions and regulated custodians. there is
At the same time, the total USDC circulation was about $44.6 billion, and the reserves exceeded the total circulation.
Of the reserves, fund assets totaled $23.6 billion, U.S. Treasury bills totaled approximately $10.5 billion, and cash deposits totaled $10.6 billion. The content is reviewed by the Grant Thornton Group, a leading accounting and auditing firm, in accordance with the standards set by the American Institute of Certified Public Accountants (AICPA).
connection: US Circle emphasizes holding audited “collateral assets” of USDC reserves
As a stablecoin issuer, Tether also regularly discloses information to ensure the transparency of its USDT reserves.
connection: US Tether to strengthen asset reliability of USDT
The post Circle to keep USDC reserves in minority banks appeared first on Our Bitcoin News.
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