Citizens Trust Bank To Hold $65 Million in USDC Reserves

• On April 1, 2022, Circle announced that BNY Mellon would be holding USDC reserves.
• Circle’s USDC stablecoin is the second biggest U.S. dollar-pegged cryptocurrency asset.

Circle, a digital currency company, has revealed that Citizens Trust Bank, an Atlanta institution established in 1947, would store $65 million in USD coin (USDC) reserves. This decision follows a string of previous ones in which Circle announced allocating money to several banks in the United States.

To provide just two examples, on April 1, 2022, Circle announced that BNY Mellon would be holding USDC reserves, and in June of that same year, the Boston-based firm revealed that New York Community Bank would be holding USDC reserves.

Key Part of Fast-Growing New Markets

A part of the USDC reserves are also being managed by Blackrock in a fund that is registered with the U.S. Securities and Exchange Commission (SEC), as Circle revealed in November.

Cynthia N. Day, the president and chief executive officer of Citizens Trust Bank stated:

“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.” 

On Friday, Circle also announced that it will be working with Citizens Trust Bank to improve financial education programmes. With a launch event planned for the summer and a $100,000 seed grant from Circle, the organization hopes to spread its programming into the community through Atlanta’s historic HBCUs and neighborhood schools.

With a market worth of $42.66 billion as of February 24th, 2023, Circle’s USDC stablecoin is the second biggest U.S. dollar-pegged cryptocurrency asset. As of Friday’s numbers, the total amount of USDC coins in circulation has dropped by 2.7% in the previous 30 days.