July 21, 2024

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 issuer of the USDC stablecoin, has found a replacement for the Signet platform fromSignature Bank.This was told by the company's CEO Jeremy Alloy(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 in the digital asset industry were asked to close their accounts by April 5.

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

Allaire hopes that USDC users inwill ultimately operate outside of the traditional banking system, maintaining their working capital in blockchain treasuries and will not be dependent on banking schedules.

“USDC operates 24 hours a day, 7 days a week. You can go directly to a counterparty anywhere in the world, and it’s much better than what you get from your bank,” Allaire said.

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

Earlier, Allaire stated that the banking crisis and problems with regulation of the crypto industry in the United States are the main factors that led to a decrease in the market capitalization of USDC. 

Circle's USDC stablecoinnow ranks second in market capitalization after the stablecoin Tether (USDT). In the summer of 2022, the total value of USDC reached $56 billion, but as of April 26, 2023, it decreased by approximately half - to $30.7 billion.