Global digital bank FV Bank is the latest financial platform to allow deposits to the Circle-backed USD Coin (USDC) stablecoin.
FV Bank announced on Wednesday the launch of a new service that allows its account holders to make direct deposits in USDC into the bank’s dollar accounts.. The new feature allows clients to receive USDC into their accounts in a similar way to traditional deposits, such as wire transfers or the automated clearinghouse network.
According to the announcement, funds received in USDC are instantly and automatically converted to United States Dollars (USD) at the time of deposit. This new solution allows FV Bank users to issue invoices to their international clients in USDC, allowing faster and cheaper transactions.as well as conversions, the firm said.
“We believe this feature will greatly enhance the user experience and open up more friction-free trading,” FV Bank CEO Miles Paschini told Cointelegraph.
Paschini noted that USDC will be the first stablecoin accepted for USD deposit at this time, but FV Bank may consider more stablecoins in the future.
“We have chosen USDC due to its license, reserve attestation and real-time 1:1 liquidity,” the CEO noted.
In addition to integrating USDC, FV Bank also plans to launch its own custody service in Q4 2022, allowing customers to hold digital assets in a custody account alongside their deposit account.. According to Paschini, FV Bank’s custody will support major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and other currencies, “based on our supported asset criteria.”
FV Bank is a digital bank that supports cryptocurrencies and is regulated by the Office of the Commissioner of Financial Institutions of Puerto Rico. The company originally planned to roll out cryptocurrency custody services in 2021, following the lead of major US banks like Standard Chartered.
According to the CEO, the firm’s cryptocurrency roadmap has not suffered any problems despite the current crypto winter.
“Overall, the ‘bear market’ has not affected our business as we continue to grow and expand our services responsibly,” Paschini said.
FV Bank is not the only financial institution that has recently joined the USDC. On Tuesday, Robinhood, a crypto-friendly stock trading app, announced the listing of USDC. The stablecoin will be available for transfer on the Polygon and Ethereum networks today.
While FV Bank and Robinhood are moving to add USDC support, some major companies have recently chosen to limit some USDC services.
On September 6, Binance announced its plans to suspend trading of USDC along with other stablecoins such as Pax Dollar (USDP) and TrueUSD (TUSD), citing liquidity and capital efficiency reasons. Indian exchange WazirX subsequently followed Binance by announcing the same measures and offering the Binance-backed stablecoin Binance USD (BUSD) instead.
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