Yesterday Circle, the issuer of the USDC stablecoin, announced a custody partnership with New York Community Bancorp (NYCB).

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Under this agreement, NYCB's bank subsidiary, New York Community Bank, will serve as a custodian for the USDC reserves that back the stablecoin. The two companies will also work on "low-cost financial solutions for underserved and unbanked communities," according to a statement.

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"If we want to make the future of money and payments more inclusive than the past, we have to build new partnerships and connections at the community level," said Dante Disparte, Chief Strategy Officer and Head of Global Policy for Circle. "By partnering with NYCB, we are opening up new pathways for community banks and MDIs across the country to be key participants in the fast growing digital assets market."

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Notably, the partnership is part of Circle’s plan to allocate a share of its USDC dollar-denominated reserves to minority-owned depository Institutions (MDIs) and community banks across the U.S.

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