Global digital bank FV Bank is the latest financial platform to enable deposits in the Circle-backed Stablecoin USD Coin (USDC).
FV Bank on Wednesday announced the launch of a new service that allows its account holders to make direct deposits in USDC to US dollar bank accounts. The new feature allows customers to receive USDC into their accounts similar to traditional deposits such as bank accounts or an automated clearinghouse network.
According to the statement, USDC funds received are instantly and automatically converted to US dollars (USD) at the time of deposit. This new solution enables FV Bank customer owners to raise invoices to their international clients in USDC, enabling faster and cheaper transactions as well as conversions, the firm said.
“We believe this feature will greatly improve the customer experience and open up frictionless commerce,” FV Bank CEO Miles Paschini told Cointelegraph.
Paschini pointed out that USDC will be the first stablecoin accepted for USD deposit at this time, but FV Bank may consider more stablecoins in the future.
“We chose USDC for its licensing, reserve confirmation and real-time 1:1 liquidity,” said the CEO.
In addition to the USDC integration, FV Bank also plans to launch its own custodial service in the fourth quarter of 2022, allowing customers to hold digital assets in a custodial account alongside their deposit account. According to Paschini, FV Bank Custody will support major cryptocurrencies such as Bitcoin (BTC), Ether (ETH) and other coins, “based on our criteria of supported assets.”
FV Bank is a crypto-friendly digital bank regulated by the Office of the Commissioner of Financial Institutions in Puerto Rico. The company originally planned to introduce cryptocurrency custody services in 2021, following the example of major US banks such as Standard Chartered.
According to the CEO, the company’s crypto map has not suffered 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, Paschini said.
FV Bank is not the only financial institution that has recently integrated USDC. On Tuesday, crypto-friendly stock trading app Robinhood announced a USDC listing. Stablecoin will to become available for streaming on both the Polygon and Ethereum networks today.
Related: Circle co-founder says converging dollar ledgers on Binance would be good for USDC
While FV Bank and Robinhood are trying to add support for USDC, some big companies have recently decided to abandon the stablecoin.
On September 6, Binance announced plans to delist USDC along with other stablecoins such as Pax Dollar (USDP) and TrueUSD (TUSD), citing liquidity and capital efficiency. Indian exchange WazirX then followed Binance in announcing the same measures and instead offered the Binance-backed Binance USD (BUSD) stablecoin.