FDIC-insured Citizens Trust Bank to hold $65M in USDC reserves

Citizens Trust Bank, a fiscal instauration regulated by the Federal Deposit Insurance Corporation (FDIC), has partnered with Circle Internet Financial to clasp immoderate of its reserves successful USD Coin (USDC) — a determination the companies said would beforehand fiscal inclusion and integer literacy successful the greater Atlanta area. 

On Feb. 24, Circle announced the Atlanta-based Citizens Trust Bank would clasp $65 cardinal successful USDC reserves arsenic portion of a broader collaboration betwixt the 2 companies. The bank’s USDC reserves volition supply tiny businesses with entree to superior and beryllium utilized for different fiscal inclusion initiatives. Citizens Trust’s president and main enforcement officer, Cynthia N. Day, said holding USDC would besides amended the bank’s equilibrium sheet.

Citizens Trust Bank is classified arsenic a Minority-owned Depository Institution (MDI) by FDIC, meaning that a bulk of its voting banal oregon committee of directors are number individuals. The slope joined the Federal Reserve System successful 1947.

The slope increased its deposits by $220 cardinal successful 2020 and 2021. In 2021, the past twelvemonth determination is publically disposable information, Citizens funded $157 cardinal worthy of commercial, user and residential owe loans.

Related: Breaking: Circle squashes rumors of planned SEC enforcement action

Citizens Trust isn’t the lone U.S. fiscal instauration to clasp USDC reserves. As reported by Cointelegraph, the Bank of New York Mellon, Customers Bank, New York Community Bank, Silvergate Bank, Silicon Valley Bank and Signature Bank besides hold USDC connected their equilibrium sheet.

1/ Last year, stablecoins settled >$7tn on-chain. Current run-rate is ~$9tn/yr. This is importantly much than Mastercard (~$2.2tn), Amex (~$1tn), and Discover (pic.twitter.com/DMG9NpDW8t

Stablecoin settlements person grown successful lockstep with the decentralized concern roar of the past 2 years, with much users relying connected dollar-pegged assets to support collateral, commercialized cryptocurrency and gain yield. However, stablecoin usage for payments remains minimal owed to regulatory barriers.