On Friday, cryptocurrency firm and stablecoin issuer Circle announced that financial institution Citizens Trust Bank will hold $65 million in cash reserves in US currencies. Circle said the move is part of the company’s plan to allocate shares of the stablecoin’s denominated reserves to minority-owned depository institutions (MDIs) and community banks across the United States.
Circle partners with Atlanta-based Citizens Trust Bank
The digital currency company Circle has announced that Atlanta-based Trusted bank of citizens, founded in 1947, will have $65 million in USD coin (USDC) reserves. This move follows a series of announcements in which Circle has allocated funds to various US-based financial institutions over the past year. For example, Circle stated on April 1, 2022 that BNY Mellon would hold USDC reserves, and in June, the Boston-based firm announced that New York Community Bancorp would hold USDC reserves.
Additionally, Circle announced last November that it is working with Blackrock to manage a portion of the USDC reserves in a fund registered with the US Securities and Exchange Commission (SEC). “The opportunity to hold a portion of Circle’s growing USDC reserves means we are strengthening our balance sheet and becoming a key part of fast-growing new markets,” said Cynthia N. Day, President and CEO of Citizens Trust Bank in a statement. Circle also announced Friday that it will collaborate with Citizens Trust Bank to enhance financial education initiatives.
The company stated that it is developing plans to expand programming to the community through Atlanta’s historic HBCUs and local schools, with a launch event scheduled for this summer and an initial $100,000 grant from Circle. As of February 24, 2023, Circle’s USDC stablecoin has an overall valuation of $42.66 billion and is the second-largest US dollar-pegged cryptocurrency asset in terms of market capitalization. According to metrics recorded on Friday, the number of USDC coins in circulation has decreased by 2.7% in the last 30 days.
What do you think of Circle partnering with Atlanta-based Citizens Trust Bank? Let us know what you think about this topic in the comments section below.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
