May 28, 2023

Circle has found a new bank to convert USDC to fiat

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Circle has found a new bank to convert USDC to fiat

Circle, the USDC stablecoin issuer, has found a replacement for the Signet platform from Signature Bank. This was told by the CEO of the company Jeremy Allair (Jeremy Allair).

Previously, USDC holders could transfer fundsbetween fiat currencies and cryptocurrencies around the clock thanks to the Signet service from Signature Bank, which was closed by regulators in mid-March due to systemic risks after the collapse of Silicon Valley Bank (SVB). Signature's assets were sold to Flagstar Bank and clients from the digital asset industry were asked to close accounts by April 5th.

Circle now plans to use the platforminstant access Customers Bank Instant Token (CBIT), developed by Tassat, said Jeremy Ellire. According to him, CBIT provides the same level of instant settlement as Signet.

Ellire hopes USDC users will eventuallywill eventually operate outside of the traditional banking system, keeping their working capital in blockchain treasuries and will not be dependent on bank schedules.

“USDC operates 24/7. You can apply directly to a counterparty anywhere in the world, and this is much better than what you get in your bank, ”said Ellire.

While the USDC issuer has found a replacement for Signet, the company continues to look for global banking partners.

Earlier, Ellire said that the banking crisis and the regulation problems of the crypto industry in the US are the main factors that led to the decline in the market capitalization of USDC.

Circle-issued USDC stablecoinnow ranked second by market capitalization behind the stablecoin Tether (USDT). In the summer of 2022, the total value of USDC reached $56 billion, but as of April 26, 2023, it has roughly halved to $30.7 billion.