FV Bank, a global digital bank, is the most recent addition to the list of financial platforms that support deposits in the Circle-backed stablecoin USD Coin (USDC).On Wednesday, FV Bank made the announcement that it would be launching a new service that would enable its customers to make direct deposits in USDC to the bank’s accounts denominated in U.S. dollars. Customers will be able to receive USDC on their accounts in a manner analogous to that of conventional deposit methods such as wire transfers or the automated clearing house network thanks to the new feature.
According to the announcement, any funds deposited in USDC will immediately and automatically be converted into U.S. dollars (USD). This conversion will take place at the time of deposit. According to the company, this new solution enables users of FV Bank to send invoices to their international customers in USDC. This makes transactions as well as currency conversions significantly faster and more cost-effective.According to FV Bank CEO Miles Paschini, who was quoted in Cointelegraph, “we believe that this feature will greatly enhance the user experience and open the door to more frictionless commerce.”
According to Paschini, USDC will be the first stablecoin that FV Bank will accept for depositing into USD at this time; however, in the future, the bank may consider accepting deposits in other stablecoins.According to the CEO, “We have chosen USDC due to the fact that it is licenced, has reserve attestations, and offers real time 1:1 liquidity.”Customers of FV Bank will be able to hold their digital assets in a custodial account in addition to their depositary account if the bank follows through on its plans to launch its own custody service in the fourth quarter of 2022, in addition to integrating USDC. According to Paschini, the custody services provided by FV Bank will support major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and other coins, “based upon our supported assets criteria.”
The Office of the Commissioner of Financial Institutions in Puerto Rico oversees the operations of FV Bank, a digital bank that welcomes cryptocurrency customers. Initial plans called for the launch of cryptocurrency custody services by the company in 2021, following in the footsteps of major banks in the United States such as Standard Chartered.In spite of the ongoing crypto winter, the company’s crypto roadmap has not been affected in any way, according to the Chief Executive Officer.
According to Paschini, “overall, the ‘bear market’ has not had an impact on our business as we continue to grow and expand our services in a responsible way.”There are other financial institutions besides FV Bank that have integrated USDC. On Tuesday, the cryptocurrency and blockchain-friendly stock trading software Robinhood made the announcement that it would be listing USDC. On Wednesday, the stablecoin will be made available for transfer on the Ethereum network in addition to the Polygon network.In a related development, the co-founder of Circle has stated that convergent dollar books on Binance would be beneficial for USDC.
While FV Bank and Robinhood are taking steps to extend support for USDC, other large corporations have recently chosen to restrict specific services that are compatible with USDC.Binance made the announcement on September 6 that it intended to halt trading of USDC along with other stablecoins such as Pax Dollar (USDP) and TrueUSD (TUSD), citing the need to improve liquidity and maximise capital efficiency. Subsequently, the Indian exchange WazirX followed in Binance’s footsteps by announcing the same measures and providing an alternative stablecoin in the form of Binance-backed Binance USD (BUSD).