On Friday, cryptocurrency firm and stablecoin issuer Circle announced that financial institution Citizens Trust Bank will hold $65 million in cash reserves in U.S. dollars. 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
Digital currency firm Circle announced that Atlanta-based Citizens Trust Bank, founded in 1947, will hold $65 million in dollar (USDC) currency 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 company 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 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 on Friday that it will collaborate with Citizens Trust Bank to enhance financial literacy 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 donation of $100,000 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 decreased by 2.7% over the past 30 days.
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