Circle Partners with New York Community Bancorp Inc. to Custody USDC Reserves and Invest in Community-Based Initiatives

Rhea-AI Summary

Circle Internet Financial has partnered with New York Community Bancorp (NYSE: NYCB) to establish a custody relationship for USD Coin (USDC) reserves. This collaboration marks Circle's first with a community bank, focusing on enhancing digital financial literacy and access to affordable financial solutions for underserved populations. The initiative aligns with Circle's broader goal to support Minority Depository Institutions (MDIs) and promote financial inclusion. NYCB aims to leverage this partnership to foster digital asset innovation while enhancing community outreach.

Positive

• NYCB becomes the first community bank designated as a custodian for USDC reserves.
• The partnership aims to enhance financial inclusion for underserved communities.
• Circle's commitment to allocate USDC reserves to MDIs and community banks supports long-term community investments.

Negative

• None.

NYCB partnership marks Circle's first custody relationship with a community bank and brings digital financial literacy opportunities to the greater NYCB community

BOSTON, June 28, 2022 /PRNewswire/ -- Today, Circle Internet Financial, a global digital financial technology firm and the issuer of USD Coin (USDC), has announced a custody partnership with New York Community Bancorp, Inc. (NYSE: NYCB). Under this agreement, NYCB's bank subsidiary, New York Community Bank, will become a custodian for USDC reserves. Additionally, the two organizations 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. Additionally, the plan will develop support for Minority-owned Depository Institutions (MDIs) where additional reserves may be held. New York Community is the first community bank approved by Circle to serve as a custodian for USDC reserves.

The move is part of the company's commitment to allocate a share of USDC dollar-denominated reserves to  MDIs and Community Banks across the country. Announced in November, 2021 as a foundational pillar of Circle Impact, the initiative's long-term goal is to reach billions of dollars in deposits over time across the footprint of underrepresented financial institutions.

"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," said Dante Disparte, Chief Strategy officer and Head of Global Policy for Circle. "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."

"NYCB is proud to be a leading digital asset innovator among U.S. banks," said Andrew Kaplan, Executive Vice President and Chief Digital Bank and Banking as a Service Officer of New York Community Bancorp, Inc. "We are thrilled that together with being a custodian for USDC reserves, we are also able to partner with Circle on meaningful initiatives to impact inclusion and education to our communities and customers. We look forward to working closely with Circle on this strategy and further enhancing our relationship."

About Circle

Circle is a global financial technology firm that enables businesses of all sizes to harness the power of digital currencies and public blockchains for payments, commerce and financial applications worldwide. Circle is the issuer of USD Coin (USDC), one of the fastest growing dollar digital currencies powering always-on internet-native commerce and payments. Today, Circle's transactional services, business accounts, and platform APIs are giving rise to a new generation of financial services and commerce applications that hold the promise of raising global economic prosperity for all through the frictionless exchange of financial value. Additionally, Circle operates SeedInvest, a leading startup fundraising platform in the U.S. Learn more at https://circle.com.

About New York Community Bancorp

Based in Hicksville, N.Y., New York Community Bancorp, Inc. is a leading producer of multi-family loans on non-luxury, rent-regulated apartment buildings in New York City, and the parent of New York Community Bank. At March 31, 2022, the Company reported assets of $61.0 billion, loans of $46.8 billion, deposits of $38.0 billion, and stockholders' equity of $6.9 billion.  Reflecting our growth through a series of acquisitions, the Company operates 237 branches through eight local divisions, each with a history of service and strength: Queens County Savings Bank, Roslyn Savings Bank, Richmond County Savings Bank, Roosevelt Savings Bank, and Atlantic Bank in New York; Garden State Community Bank in New Jersey; Ohio Savings Bank in Ohio; and AmTrust Bank in Florida and Arizona.

In January 2022, the Company announced a Community Benefits Agreement in collaboration with the National Community Reinvestment Coalition ("NCRC") and its members.  Under the NCRC agreement, NYCB has committed to provide $28 billion in loans, investments, and other financial support to communities and people of color, low- and moderate-income families and communities, and small businesses.  The five-year agreement is subject to the closing of NYCB's pending merger with Flagstar Bancorp, Inc.

 

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SOURCE Circle Internet Financial, LLC

FAQ

What is the partnership between Circle and NYCB about?

Circle has partnered with NYCB to establish a custody relationship for USDC reserves, aiming to enhance financial inclusion.

How does Circle's partnership with NYCB impact financial literacy?

The partnership is focused on promoting digital financial literacy in the NYCB community and underserved populations.

What are the benefits of Circle's partnership with NYCB for minority-owned institutions?

The initiative aims to support Minority Depository Institutions (MDIs) by allocating USDC reserves to enhance financial resources.

When was the Circle and NYCB partnership announced?

The partnership was announced on June 28, 2022.

What is NYCB's role in the partnership with Circle?

NYCB will act as the custodian for USDC reserves and collaborate on initiatives to enhance community financial access.