Cryptocurrency company Circle will hold $65 million in USDC reserves as Citizens Trust Bank expands its bank partnerships.
Cryptocurrency company’s new partnership
Cryptocurrency company Circle announced on its official website on February 24 that it will form a $65 million partnership with Citizen Trust Bank as part of its commitment to allocate USDC capital to minority and community banks. Citizens Trust Bank stated that as part of the partnership, $65 million worth of USDC will be held in reserves.
Additionally, Circle announced last November that it is working with Blackrock to manage some of its USDC reserves in a fund registered with the U.S. Securities and Exchange Commission (SEC). “Circle’s opportunity to retain some of its growing USDC reserves means we strengthen our balance sheet and are an important part of rapidly growing new markets,” said Cynthia N. Day, president and CEO of Citizens Trust Bank.
Circle also announced on Friday that it will be collaborating with Citizens Trust Bank to develop its financial literacy initiatives.
The company says 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 a $100,000 grant from Circle. As of February 24, 2023, Circle’s stablecoin USDC has a total value of $42.66 billion and is the second-largest cryptocurrency pegged to the US dollar by market cap. The number of USDC coins in circulation has decreased by 2.7% in the last 30 days, according to the metrics recorded according to the cryptokoin.com data.
This initiative has positive effects on other organizations.
This initiative follows the efforts of other organizations to cooperate with minority banks. On Thursday, February 23, Visa launched a multi-year program to combat economic inequality and offer expanded access and opportunities to minority-led banks and communities of color across the United States.
This Minority Depositary Accelerator program will be supported by Visa up to $100 million through deposits with MDIs. In October, Bank of America announced that it has added $100 million in low-cost deposits to MDIs, doubling its current $100 million deposits in MDIs.
The bank said at the time that with these low-cost deposits, MDIs could expand their lending capacities and other banking services in minority and low- to middle-income communities.
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