Citizens Trust Bank has announced plans to hold $65 million in cash reserves in US dollars (USDC).
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This decision was made as part of the implementation of the partnership program to promote access to digital financial services.
Circle Internet Financial, the issuer of the USDC, stated that the partnership with the minority-owned bank is part of its commitment to allocate a share of dollar-denominated reserves to depository institutions (MDI) and community banks.
Dante Disparte, Circle’s Director of Strategy and head of global policy, said that the future of the financial sector and banking will be as inclusive as possible only if marginal communities, from the point of view of the evolution of the industry, become the main actors and cease to be just beneficiaries.
In addition to supporting Citizens Trust Bank in increasing assets to $1 billion, the partnership between the two organizations also includes initiatives aimed at simplifying and expanding access to financial services and digital financial literacy in the greater Atlanta area.
In the summer of 2023, the partners intend to launch a program to teach financial literacy in schools, colleges, and universities.
Cynthia N. Day, President and CEO of Citizens Trust Bank, says that the very fact that it is possible to keep part of Circle’s growing reserves in US dollars means strengthening the balance sheet and is a confirmation that the financial institution has a strong position in fast-growing new markets.
The head of the bank also said that storing reserves in US dollars will support the lender’s desire to provide access to capital for small businesses, improve the financial ecosystem by expanding access to financial services, create wealth, and pave the way for stronger communities.
Currently, many organizations are making efforts to establish cooperation with banks owned by the minoritarian. For example, Visa launched a program on February 23 to combat economic inequality and provide expanded access and opportunities to minority-led banks and communities of color in the United States. In October, Bank of America announced that it was adding $100 million of low-cost deposits to MDIs.
As we have reported earlier, Circle Adds Apple Pay Support.
