Citizens Trust Bank, a financial institution regulated by the Federal Deposit Insurance Corporation (FDIC), has partnered with Circle Internet Financial to hold part of its reserves in USD Coin (USDC), a move that the companies say will promote financial inclusion and digital literacy in the Atlanta metropolitan area.
On February 24, Circle announced that Atlanta-based Citizens Trust Bank would hold $65 million in USDC reserves as part of a broader collaboration between the two companies.. The bank’s USDC reserves will provide small businesses with access to capital and will be used for other financial inclusion initiatives. Citizens Trust President and CEO Cynthia N. Day said holding USDC will also improve the bank’s balance sheet.
Citizens Trust Bank is classified as a Minority-Owned Depository Institution (MDI) by the FDIC, which means that the majority of its voting shares or of its board of directors are minority-owned individuals. The bank was incorporated into the Federal Reserve System in 1947.
The bank increased its deposits by $220 million in 2020 and 2021. In 2021, the latest year for which data is publicly available, Citizens financed $157 million in commercial, consumer and residential mortgage loans.
Citizens Trust is not the only US financial institution holding USDC reserves. As Cointelegraph reports, the Bank of New York Mellon, Customers Bank, New York Community Bank, Silvergate Bank, Silicon Valley Bank, and Signature Bank also have USDC on their balance sheets.
1/ Last year, stablecoins settled >$7tn on-chain. Current run-rate is ~$9tn/yr. This is significantly more than Mastercard (~$2.2tn), Amex (~$1tn), and Discover (pic.twitter.com/DMG9NpDW8t
—Peter Johnson (@TheChicagoVC) December 21, 2022
1/ Last year, stablecoins liquidated >$7 trillion on-chain. The current run rate is ~USD 9 trillion per year. This is significantly more than Mastercard (~$2.2 billion), Amex (~$1 billion), and Discover (
Stablecoin settlements have grown in step with the rise of decentralized finance over the past two years, with more users relying on dollar assets to hold collateral, trade cryptocurrencies, and earn returns. However, the use of stablecoins for payments remains minimal due to regulatory barriers.
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