An agreement between Circle Internet Financial and New York Community Bancorp, Inc. earned NYCB a custodian status today. The partnership entails that the community bank will have control and supervise the activities of the stablecoin (USDC) reserve.
Apparently, this goes down as the first time a community bank takes on the role of a stablecoin custodian. Circle, the issuer of USDC decided to embark on this deal to hasten the inclusion of underrepresented financial firms in the cryptosphere.
Circle Internet Financial is a financial technology firm that has been operational for about ten years. Since its inception, the firm’s goal is to promote and accelerate the global economic system to include people everywhere.
Also, the fintech company aims to reach out to innovative entities providing the firm with technological products. Furthermore, this led to the creation of Circle Impact, an initiative targeted at revealing underrepresented communities in the financial world.
Now, its partnership with New York Community Bancorp, Inc. is a push toward achieving that goal. Both companies will work as a team to provide financing options at a low cost for relegated communities. Circle’s blockchain will be harnessed alongside USDC solutions to facilitate financial inclusions.
The Minority-Owned Depository Institutions (MDIs) just like the community banks, also stand to benefit from this interesting partnership. Hence, a share of the stablecoin reserve will be apportioned to the MDIs serving as support in the near term. Invariably, Circle envisages that this would have amounted to billions of dollars in the future.
Chief Strategy Officer at Circle, Dante Disparte asserted that there is a need to partner and connect with communities. Ultimately, he pointed out that it is the way to go if the firm wishes to create a more inclusive system.
Circle Indulges Strategic Collaboration Deals
Meanwhile, Circle is also in strategic partnership with BlackRock, one of the world’s largest investment management firm. Actually, the partnership was birthed following a $400 million funding round. The funding round involved other investor partners like Marshall Wace LLP and Fidelity Management and Research.
Amidst Circle’s ideals and achievements, governments are putting up structures to regulate stablecoins, a move that may impact Circle and USDC.