On March 31 Boston-based Circle Internet Financial has announced that the firm is chosen America’s oldest investment bank The Bank of New York Mellon to the custody of the company’s USD Coin (USDC-USD) reserves.

The declaration made on Thursday says the advantages of the recently reported connection between Circle and BNY Mellon incorporate, the “Bridging of traditional and digital capital markets, investment management, digital asset custody, cash management for fiat and non-fiat payments, and the exploration of digital cash for purposes of settlement."

While BNY Mellon will turn into the primary custodian for USDC, Circle anticipates the partnership should further “facilitate an exchange of expertise on a range of topics across digital and traditional markets.”

“Our role as a custodian for USDC reserves supports the broader marketplace and brings value to clients,” said Roman Regelman, CEO of Asset Servicing and head of Digital at BNY Mellon.

The Bank of New York Mellon is speeding up its entrance into the digital asset space following the declaration. The bank's move comes about a month after it intended to launch a crypto custody platform.

During the declaration concerning Circle choosing BNY Mellon as USDC’s primary custodian, BNY Mellon executive Roman Regelman said that the money market faces an evolutionary turning moment.

“We are at a point in the evolution of our industry where the digitization of assets is presenting new and exciting opportunities to a broad range of market participants. BNY Mellon continues to provide products and services to players in this evolving market,” Regelman, the CEO of asset servicing and head of digital at BNY Mellon said.

“Building trust, stability, and resilience in the digital asset economy are foundational to Circle’s mission,” said Circle co-founder and CEO Jeremy Allaire. “As we continue to see exponential growth in USDC, the opportunity to work with BNY Mellon is one way we build bridges between traditional financial services and emerging digital asset markets, without sacrificing trust.”

As of now the firm’s (USDC) dollar-pegged crypto asset is the second-largest stable coin with a current market capitalization of $51.6 billion as of March. Tether (USDT-USD) tops the list with a circling supply of 81.93B coins.

Joyashree Dey

CBW - External Analyst

INDIA