Financial technology company Circle has partnered with New York-based Signature Bank, which will now hold billions of dollars in USDC reserve deposits, Circle said in a press release on 19 April.
According to the announcement, Circle already has more than $13 billion in reserves for its USDC-issued tokens — with the stablecoin growing at a rate of $300 million new tokens in circulation each week — which is driving interest from global financial service firms to partner with the company. The new partnership will make Signature Bank one of the leading financial institutions to hold USDC reserve funds. The co-founder and CEO of Circle, Jeremy Allaire, said in a statement:
“Adding a respected, forward-thinking financial institution to our USDC reserve network is another step forward in adoption and growth for the world’s fastest-growing digital dollar currency. Integration into Signet will afford many of our commercial customers real-time account USDC settlement 24/7/365.”
As part of the partnership, Signature will integrate Circle into its blockchain-based real-time payments platform Signet, which will open the door to future integrations of Circle products and services within the bank. The integration is expected to complete in the “coming months”, with Signature’s president and CEO, Joseph J. DePaolo, saying the move is the result of increased interest in Circle from crypto-based commercial clients of the bank.
The advantage of Signet — and its competitor Silvergate Exchange Network (SEN) — is that it offers real-time payments every day of the week unlike the traditional finance rails, which do not operate on weekends.
Circle’s USDC digital asset has emerged as one of the world’s fastest-growing stablecoins. Last month payments giant Visa announced that transactions on its network can now be settled using Circle’s stablecoin, becoming the first major payments network to use stablecoins as a settlement currency.