Cryptocurrency firm and stablecoin issuer, has announced that Citizens Trust Bank will hold $65 million in USD Coin (USDC) cash reserves. USDC is a stablecoin that is pegged to the US dollar, meaning that its value is designed to remain stable and not experience the same price volatility as other cryptocurrencies.
By holding USDC cash reserves, Citizens Trust Bank may be able to provide its customers with access to stable and reliable digital assets, while also helping to promote the adoption and use of cryptocurrencies more broadly. Circle has previously stated that its USDC stablecoin is backed by a reserve of fully audited and collateralized assets, including cash and short-term U.S. Treasury bonds.
The announcement reflects the growing interest in stablecoins and other cryptocurrencies among traditional financial institutions, as well as the potential for these digital assets to play a more significant role in the broader financial ecosystem in the years to come.