Circle Financial, the issuer of the USDC stablecoin, is partnering with Cross River Bank after New York regulators shut down its former settlement partner, Signature Bank, according to a statement from CEO Jeremy Allaire. “The 1:1 redeemability of all USDC in circulation is of the utmost importance to Circle,” Allaire emphasized.
Crypto companies fight for new banking partners in the United States
Circle Financial has announced a new banking partner following the decoupling of its stablecoin, usd coin (USDC), from the US dollar over the weekend. CEO Jeremy Allaire saying The USDC in a statement Sunday night that more than $3 billion in funds previously trapped in Silicon Valley Bank (SVB) would now be accessible thanks to the federal bailout announced by the central bank and US Treasury. returned to parity with the US dollar, or was very close to it, approximately 45 minutes after the US Federal Reserve announced that all depositors at SVB and Signature Bank would recover.
Circle CEO Jeremy Allaire’s announcement said the company is working with a new banking partner and that Circle’s USDC trades will begin trading Monday morning, with a new automated settlement through Cross River Bank. Despite the closures of Silvergate Bank, Silicon Valley Bank (SVB) and Signature Bank, some US crypto firms still have banking partners, according to Larry Cermac, head of research and data at The Block. He noted that there are only a small number of so-called crypto banks available today.
Check listed a number of banks that are considered friendly to the crypto industry, including Customers Bank, First Foundation Bank, Sutton Bank, Evolve Bank & Trust, Bankprov, Quontic Bank, and Cross River Bank. There is rumors that Coinbase, a popular cryptocurrency exchange, is also taking advantage of Cross River Bank as a banking partner. However, the situation has not been easy for everyone, as the US Okcoin exchange had to lay off US dollar deposits and over-the-counter services due to problems with his former primary USD bank, Signature Bank. Okcoin president Hong Fang confirmed the suspension, explaining that the exchange was working to find a new banking partner.
Okcoin has suspended wire and ACH transfers in US dollars, but Okcoin Chairman Hong Fang has assured the public that “all corporate and client funds are safe.” The scramble for new banking partners by crypto firms comes after the Federal Deposit Insurance Corporation (FDIC) transformed Signature Bank and Silicon Valley Bank (SVB) into bridge banks. On Monday morning, US President Joe Biden reassured the nation that “America’s banking system is safe” and that “your deposits will be there when you need them.”
Meanwhile, reports say the trade has been detained for several US banks when the shares opened on Monday.
What do you think the future holds for cryptocurrency companies and their banking associations in the ever-evolving financial landscape? Share your thoughts in the comments section below.
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