On Friday, cryptocurrency firm Circle Announced that financial institution Citizens Trust Bank will maintain US dollar reserves of $65 million. The move is part of the company’s plan to distribute shares of stablecoin-denominated reserves to minority-owned deposit institutions (MDIs) and community banks around the world.
Circle Collaborates with Atlanta-based Citizens Trust Bank
Digital currency firm Circle shared that the Atlanta-based Citizens Trust Bank, founded in 1947, will keep $65 million in US currency (USDC) reserves. This follows a series of announcements from Circle over the past year, allocating funds to different US-based financial institutions. For instance, Circle reported on April 1, 2022 that BNY Mellon would hold USDC, and in June The Boston-based New York Community Bancorp would maintain USDC reserves.
Furthermore, Circle announced last November that it was partnering with Blackrock, where a portion of USDC reserves would be managed in a US-registered fund approved by the 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. Friday’s announcement from Circle also included plans to work with Citizens Trust Bank to bolster financial education initiatives.
The firm said it is planning to expand programming for the community through its plans. With a launch ceremony scheduled for this summer and a preliminary $100,000 grant from Atlanta’s historic HBCUs, along with local colleges, will be launched by Circle. As of February 24, 2023, Circle’s USDC stablecoin, with a total value of $42.66 billion, is the second largest US dollar-pegged crypto asset according to market capitalization. According to Coin Metrics data, Friday USDC cash circulation has decreased by 2.7% in the past 30 days.
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