The most recent financial platform to permit deposits in USD Coin, a stablecoin backed by Circle, is the global digital bank FV Bank (USDC).
The debut of a new service enabling account holders of FV Bank to make direct deposits in USDC to the bank’s U.S. dollar accounts was announced on Wednesday. Customers can now use the new feature to receive USDC on their accounts in a manner similar to how they would receive traditional deposits via wire or an automated clearing house network.
The release states that at the time of deposit, acquired USDC monies are promptly and automatically converted into U.S. dollars (USD). According to the company, this new solution enables FV Bank users to send USDC invoices to their overseas clients, facilitating faster and less expensive transactions as well as conversions.
“We believe this feature will greatly enhance the user experience and open up more frictionless commerce,” FV Bank CEO Miles Paschini said.
Paschini noted that FV Bank may take into account more stablecoins in the future, but USDC will be the first stablecoin allowed for deposit into USD at this time.
“We have chosen USDC due to its licensing, reserve attestations, and the real-time 1:1 liquidity,” the CEO noted.
In addition to incorporating USDC, FV Bank intends to introduce its own custody service in Q4 2022, enabling users to hold digital assets in addition to their depositary account in a custodial account. According to Paschini, significant cryptocurrencies including Bitcoin (BTC), Ether (ETH), and other tokens would be supported under FV Bank’s custody “depending upon our supported assets criteria.”
FV Bank is a digital bank that accepts cryptocurrencies that are overseen by Puerto Rico’s Office of the Commissioner of Financial Institutions. According to the company’s original strategy, bitcoin custody services would be introduced in 2021, following in the footsteps of significant U.S. banks like Standard Chartered.
The CEO claims that, despite the prolonged crypto winter, there have been no problems with the company’s crypto roadmap.
“Overall, the ‘bear market’ has not impacted our business as we continue to grow and expand our services in a responsible way,” Paschini said.
The recent integration of USDC by financial institutions is not limited to FV Bank. The listing of USDC was revealed on Tuesday by the cryptocurrency-friendly stock trading app Robinhood. Today, transfers of the stablecoin will be possible on the Polygon and Ethereum networks.
While FV Bank and Robinhood are attempting to add support for USDC, some significant businesses have recently decided to drop the stablecoin.
In an announcement made on September 6, Binance stated that it intended to delist USDC along with other stablecoins including Pax Dollar (USDP) and TrueUSD (TUSD), citing the need for liquidity and capital efficiency. Following Binance’s lead, the Indian exchange WazirX announced the same policies and substituted the Binance-backed Binance USD (BUSD) stablecoin.