USDC assets to be held in NY Community Bank to aid underrepresented groups

What

New York Community Bank (NYCB) will soon provide custody services for assets backing Circle’s USDC. This will mark the first time a community bank will perform this function and is part of Circle’s efforts to give greater representation to women and ethnic minorities. Community banks are owned and run by communities that focus on providing financial services to their local areas

Why

Circle previously outlined its objectives to make crypto more inclusive for underrepresented groups. This, Circle says, will be achieved by “allocating a share of USD Coin (USDC) dollar-denominated reserves to often underrepresented Minority-owned Depository Institutions (MDIs) and Community Banks, with the long-term goal of reaching billions of dollars in deposits over time.”

What next

According to a press release announcing the partnership, NYCB and Circle “will work together to create strategies utilizing Circle blockchain and stablecoin solutions to  promote access to low-cost financial solutions for underserved and unbanked communities” 

The story

A 2019 study by NYC.Gov revealed that 9.4% of households are unbanked in New York City — equalling roughly 301,000 households.

Speaking on the news, Dante Disparte, Chief Strategy Officer for Circle said “If we want to make the future of money and payments more inclusive than the past, we have to build new partnerships and connections at the community level. By partnering with NYCB, we are opening up new pathways for community banks and MDIs across the country to be key participants in the fast-growing digital assets market.”

USDC is the second-largest stablecoin to Tether by market cap. USDC has been steadily gathering momentum lately, having surpassed Tether for stablecoin volume on Ethereum for the first time.

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