Global Digital Bank FV Bank is the latest financial platform to enable deposits in circle-backed stablecoin (USDC).
On Wednesday, FV Bank announced the launch of a new service that allows its account holders to make direct deposits in USDC to the bank’s USD accounts. The new feature allows customers to receive USDC on their accounts similar to traditional deposits such as wire transfer or an automated clearinghouse.
According to the announcement, funds received from USDC are instantly and automatically transferred to US dollars (USD) at the moment of deposit. The company said this new solution allows FV Bank users to send invoices to their international customers in USDC, enabling faster and cheaper transactions and transfers.
“We believe this feature will greatly enhance the user experience and open up more frictionless commerce,” Miles Pachini, CEO of FV Bank, told Cointelegraph.
Pachini noted that USDC will be the first stablecoin accepted for deposits in US dollars at this time, but that FV Bank may consider more stable coins in the future.
“We chose USDC because of its licensing, reserve certificates, and 1:1 liquidity in real time,” the CEO noted.
Aside from the USDC consolidation, FV Bank also plans to launch its custodian service in the fourth quarter of 2022, allowing customers to hold digital assets in a custodian account alongside their custodian account. According to Paschini, FV Bank’s custody will support major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and other coins, “based on our backed asset standards.”
FV Bank is a crypto-friendly digital bank regulated by the Financial Institutions Commissioner’s Office in Puerto Rico. The company originally planned to roll out cryptocurrency custody services in 2021, similar to major US banks such as Standard Chartered.
According to the CEO, the company’s crypto roadmap has not had any problems despite the ongoing crypto winter.
“Overall, the ‘bear market’ has not affected our business as we continue to grow and expand our services in a responsible manner,” Pachini said.
FV Bank is not the only financial institution to incorporate USDC. On Tuesday, crypto-friendly stock trading app Robinhood announced the listing of USDC. The stablecoin will become available for transfer on the Polygon and Ethereum networks on Wednesday.
Related: Circle Co-Founder Says Averaging Dollar Books on Binance Will Benefit for USDC
As FV Bank and Robinhood move to add USDC support, some major companies have recently chosen to limit some USDC services.
On September 6, Binance announced plans to suspend trading of USDC along with other stablecoins such as Pax Dollar (USDP) and TrueUSD (TUSD), citing liquidity and capital efficiency purposes. Indian exchange WazirX later followed Binance in announcing the same actions and offering Binance, backed by Binance USD (BUSD), a stablecoin instead.