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BNY Mellon to become primary custodian for Circle’s USDC stablecoin reserves BNY Mellon to become primary custodian for Circle’s USDC stablecoin reserves

BNY Mellon to become primary custodian for Circle’s USDC stablecoin reserves

America's oldest bank vowed to help Circle build โ€œa stable and resilient financial ecosystem for the future.โ€

BNY Mellon to become primary custodian for Circle’s USDC stablecoin reserves

Cover art/illustration via CryptoSlate

Peer-to-peer payments processor Circle Internet Financial today announced that it has chosen the Bank of New York Mellon Corporation, also known as BNY Mellon, to become a primary custodian for its USD Coin (USDC) reserves.

In the press release, Circle CEO and co-founder Jeremy Allaire noted:

โ€œAs 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. Together, we will leverage our respective areas of expertise to innovate and build the financial ecosystem of the future.โ€

Bridging traditional and digital finance

USD Coin is currently the fifth-largest cryptocurrency thanks to its market capitalization (the total current price of all USDC tokens in circulation) of about $51.8 billion, according to CryptoSlate.

Per the press release, the new partnership between Circle and 237-year-old BNY Mellon will โ€œfacilitate an exchange of expertise on a range of topics across digital and traditional markets.โ€

This includes integration of traditional and digital capital markets, investment management, digital asset custody, cash management for fiat and non-fiat payments, and the โ€œexploration of digital cash for purposes of settlement.โ€

BNY Mellon’s appointment as a primary USDC custodian also โ€œsupports the broader marketplace and brings value to clients, founded on our role at the intersection of trust and innovation,โ€ said Roman Regelman, the bank’s CEO of asset servicing and head of digital, adding:

โ€œWe 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.โ€

As CryptoSlate reported, USDC has been silently catching up to Tetherโ€™s USDT stablecoin over the past months. Still, with a market capitalization of just over $82 billion, the latter is currently the largest dollar-pegged coin in the sectorโ€”but it looks like the race is on.