• Circle, a digital currency company, has announced that Citizens Trust Bank will hold $65 million of USDC reserves.
• This follows on from previous decisions to allocate money to several banks in the United States, one of which being BNY Mellon.
• Meanwhile, Circle is also working with Citizens Trust Bank to improve financial education programmes and provide a $100,000 seed grant.
Circle Announces USDC Reserves with Citizens Trust Bank
Circle, a digital currency company, has revealed that Citizens Trust Bank, an Atlanta institution established in 1947, will store $65 million in USD coin (USDC) reserves. This decision follows a string of similar ones where Circle allocated money to several banks in the United States- including BNY Mellon who were announced as holding USDC reserves on April 1st 2022 and New York Community Bank who were revealed as holders in June of the same year.
Blackrock Manages Part Of The Reserves
A part of the USDC reserves are also being managed by Blackrock- as Circle revealed in November- within a fund registered with the U.S Securities Exchange Commission (SEC). Cynthia N. Day, President and Chief Executive Officer of Citizens Trust Bank commented: “The opportunity to maintain a portion of Circle’s growing USDC reserves means we are strengthening our balance sheet and becoming part of fast-growing new markets.”
Financial Education Programmes
On Friday, Circle also announced that it will be working with Citizens Trust Bank to improve financial education programmes. With a launch event planned for the summer and a $100k seed grant from Circle; the organization hopes to spread its programming into communities via Atlanta’s historic HBCUs and neighborhood schools.
USDC Stablecoin Market Worth
As of February 24th 2023; Circle’s USDC stablecoin market was worth around $42 billion making it the second biggest U.S dollar-pegged cryptocurrency asset after registering a 2.7% decrease over the past 30 days leading up until Friday’s numbers were released..
Overall; this decision by Circe highlights their commitment towards providing secure banking solutions for cryptocurrency users along with additional initiatives like financial education programmes which could help foster greater adoption rates amongst consumers worldwide