Citizens Trust Bank To Hold Part of Reserves for Stablecoin USDC

Circle Internet Financial Ltd. said Atlanta-based lender Citizens Trust Bank will hold a small part of the reserves backing its stablecoin USDC in custody, as US regulators tell banks to be vigilant about risks related to the most widely used crypto tokens.

The minority-owned bank will hold $65 million in cash reserves for USDC, Circle said in a statement on Friday. USDC is the second-largest stablecoin, with around $42 billion in circulation.

Circle and Citizens Trust Bank will also collaborate on financial inclusion and digital financial literacy initiatives for their customers, the statement said. Boston-based Circle has said it ...