FV Bank, based in Puerto Rico, has partnered with stablecoin issuer Circle to allow its customers to receive USD Coin (USDC) deposits into their accounts, with the goal of making international transfers easier and less expensive for its customers.
FV Bank stated in a blog post that Circle will instantly convert the USDC that bank clients receive into US dollars at the time of deposit. According to the internationally focused digital bank, these stablecoin deposits will facilitate cross-border transactions.
“This allows FV Bank account holders to raise invoices to their international clients in USDC and receive it without worrying about wallets, conversions, fees etc,” the company said.
Digital banking and digital asset custody services are offered by FV Bank, which is governed by the Office of the Commissioner of Financial Institutions (OCIF) of Puerto Rico. According to a chart in the blog post, the bank will be in charge of ensuring that USDC transactions are compliant as money is transferred from users’ cryptocurrency wallets to their bank accounts. Both institutional and retail clients of FV are able to receive deposits of USDC through the Polygon (MATIC) blockchain or the Ethereum ERC-20 token.
USDC is fully backed by US dollar reserves, including cash and three-month treasuries, according to Circle. Other banking-focused fintechs that support USDC include the European crypto payment service BCB Group and the corporate payments and financing platform Tribal Credit.