FDIC-insured Citizens Trust Bank to hold $65M in USDC reserves

In a joint statement released by three United States federal agencies, the banking sector was advised against creating new risk management principles to counter liquidity risks resulting from crypto-asset market vulnerabilities.

The Board of Governors of the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) released a statement reminding banks to apply existing risk management principles when addressing crypto-related liquidity risks.

  1. Deposits placed by a crypto-asset-related entity for the benefit of the crypto-asset-related entity’s customers (end customers).
  2. Deposits that constitute stablecoin-related reserves.