Circle Chooses BNY Mellon as Primary Custodian for its USDC Reserves


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