Global digital bank FV Bank is the latest financial platform to make deposits in Circle-backed stablecoin USD Coin (USDC).
FV Bank announced on Wednesday the launch of a new service that allows its account holders to deposit USDC directly into the bank’s U.S. dollar account. The new feature enables customers to receive USDC on their accounts, similar to traditional deposits such as wire transfers or automated clearing house networks.
According to the announcement, the received USDC funds are automatically converted into US dollars (USD) upon deposit. The new solution allows FV Bank user holders to invoice their international clients in USDC, enabling faster and cheaper transactions and conversions, the company said.
Miles Paschini, CEO of FV Bank, told Cointelegraph: “We believe this feature will greatly enhance the user experience and open up more frictionless business models.”
Paschini pointed out that USDC will be the first stablecoin to accept deposits in USD, but FV Bank may consider more stablecoins in the future.
“We chose USDC because of its licensing, proof of reserves and real-time 1:1 liquidity,” the CEO noted.
In addition to integrating USDC, FV Bank plans to launch its own custody service in Q4 2022, allowing customers to hold digital assets in custody accounts alongside their depository accounts. According to Paschini, FV Bank’s custody will support major cryptocurrencies such as Bitcoin (BTC), Ether (ETH) and other coins, “based on the asset standards we support.”
FV Bank is a crypto-friendly digital bank regulated by the Office of the Commissioner of Financial Institutions in Puerto Rico. The company initially planned to launch a cryptocurrency custody service in 2021 following a lawsuit from major U.S. banks such as Standard Chartered.
According to the CEO, despite the ongoing crypto winter, the company has not encountered any problems with its cryptocurrency roadmap.
“Overall, the ‘bear market’ has not impacted our business as we continue to grow and expand our services in a responsible manner,” Paschini said.
FV Bank is not the only financial institution to integrate USDC recently. On Tuesday, crypto-friendly stock trading app Robinhood announced the listing of USDC.Stablecoins will become Available today on Polygon and Ethereum networks.
related: Circle co-founder says USD ledger fusion on Binance is good for USDC
While FV Bank and Robinhood are adding support for USDC, some major companies have recently opted to move away from stablecoins.
On September 6, Binance announced plans to delist USDC along with other stablecoins such as Pax Dollar (USDP) and TrueUSD (TUSD) for liquidity and capital efficiency purposes. Indian exchange WazirX followed Binance in announcing the same move and instead offered the Binance-backed Binance Dollar (BUSD) stablecoin.