Digital bank FV Bank integrates USDC stablecoin for direct deposits

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Global digital bank FV Bank is the latest financial platform to enable deposits in Circle-backed stablecoin USD Coin (USDC).

FV Bank on Wednesday announced the launch of a new service that allows account holders to make direct USDC deposits into the bank’s US dollar accounts. The new feature allows customers to receive USDC in their accounts, similar to traditional deposits such as wire transfer or the automated clearinghouse network.

According to the announcement, USDC funds received are immediately and automatically converted into the United States Dollar (USD) at the time of deposit. This new solution allows holders of FV Bank users to bill their international customers in USDC, enabling faster and cheaper transactions and conversions, the company said.

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“We believe this feature will significantly improve the user experience and open up more frictionless trading,” Miles Paschini, CEO of FV Bank, told TSWT.

Paschini pointed out that USDC will currently be the first stablecoin to be accepted for USD deposit, but FV Bank may consider more stablecoins in the future.

“We chose USDC because of its licensing, reserve clearance and real-time 1:1 liquidity,” noted the CEO.

In addition to integrating USDC, FV Bank also plans to launch its own custodial service in Q4 2022, allowing customers to hold digital assets in a custodial account in addition to their custodial account. According to Paschini, FV Bank’s custodianship will support major cryptocurrencies such as Bitcoin (BTC), Ether (ETH) and other coins, “based on our supported asset criteria.”

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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 roll out cryptocurrency custody services in 2021, following the lead of major US banks such as Standard Chartered.

According to the CEO, the company’s crypto roadmap has not encountered any problems despite the ongoing crypto winter.

“Overall, the bear market has not impacted our business as we continue to grow and expand our services responsibly,” 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. The stablecoin will become available today for transfer on both Polygon and Ethereum networks.

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Related: Circle Co-Founder Says Converged Dollar Books on Binance Would Be Good for USDC

While FV Bank and Robinhood are taking steps to add USDC support, some major companies have recently opted to let go of the stablecoin.

On September 6, Binance announced plans to scrap USDC alongside other stablecoins such as Pax Dollar (USDP) and TrueUSD (TUSD), citing liquidity and capital efficiency purposes. Indian exchange WazirX then followed Binance by announcing the same measures and offering Binance-backed Binance USD (BUSD) stablecoin instead.