Circle Partners with Citizens Trust Bank
- Between 2020 and 2021, Citizens Trust Bank raised its deposits by $220 million.
- Other US-based banks hold USDC on their balance sheets, including the Bank of New York Mellon
- Stablecoins have grown in popularity over the past two years.
Stablecoin issuer Circle has partnered with Citizens Trust Bank to promote financial inclusion in the greater Atlanta area. The partnership would see Citizens Trust, regulated by the Federal Deposit Insurance Corporation (FDIC), hold some of its reserves in Circle’s USD Coin, USDC.
Circle, in a post published on Friday, February 24, said that as part of a larger partnership between the two organizations, Citizens Trust Bank would hold $65 million in USDC reserves. The USDC reserve at Citizens Bank will provide access to capital for small firms and will be used to promote initiatives to increase financial inclusion.
Reacting to the partnership, Dante Disparte, Chief Strategy Officer and Head of Global Policy for Circle said,
For the future of finance and banking to be more inclusive than in the past, historically marginalized communities cannot merely be beneficiaries of financial services, they must also be protagonists. Citizens Trust Bank is a phenomenal leader in this space. We are anxious to support their strategic drive to over $1 billion in assets and help drive financial inclusion and digital financial literacy in Atlanta.
Furthermore, Circle and Citizens Trust Bank plan to broaden their partnership to include the entire Atlanta region, focusing on efforts for digital financial literacy and financial inclusion for their users. There are also plans to expand programming in the neighborhood through Atlanta’s historic HBCUs and neighborhood schools.
Cynthia N. Day, president and chief executive officer of Citizens Trust Bank, said the collaboration with Circle shows how “strong partnerships can build stronger communities.” Cynthia also noted that holding USDC would improve Citizens Bank’s balance sheet.
The opportunity to maintain 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. This will support our commitment to providing access to capital for small businesses, improve the financial ecosystem through financial inclusion, build wealth, and pave the way for stronger communities.
The FDIC has designated Citizens Trust Bank as a minority-owned depository institution (MDI), which means that the majority of its voting stock or board of directors are minorities.
Other prominent banks, such as Silvergate Bank, Bank of New York Mellon, Silicon Valley Bank, Customers Bank, Signature Bank, and New York Community Bank, hold USDC on their balance sheets.