BNY Mellon Will Become The Main Custodian Of Circle’s USDC

Time Stamp: March 31, 2022 2:57 PM
Source Node: 1243780

BNY Mellon will become the main custodian of Circle’s USDC stablecoin according to a recent announcement that we have in our latest altcoin news.

Circle tapped BNY Mellon to serve as the main custodian of its stablecoin USDC. The press release reads that the latest collaboration between these two will facilitate an exchange of expertise on a range of topics across digital and traditional markets which include the bridging of legacy and digital capital markets, digital asset custody and investment management as well as the exploration of digital cash for purposes of settlement. The CEO of Asset Servicing and Head of Digital at the bank Roman Regelman noted:

“Our role as a custodian for USDC reserves supports the broader marketplace and brings value to clients, founded on our role at the intersection of trust and innovation.”

The co-founder of Circle Jeremy Allaire added that the partnership with BNY Mellon will allow his company to build bridges between the traditional financial services and the emerging digital asset markets without having to sacrifice trust. BNY Mellon will become the main custodian of Circle’s USDC while the latter is the fastest-growing stablecoin with a market of over $50 billion. It trails Tether when compared to other stablecoins but it is still the fifth biggest crypto by market cap.

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The Bank of New York Mellon is the oldest financial institution in the US and traces to the 18th century. It has been at the forefront of crypto adoption from Wall Street. The bank dipped its toes in the crypto industry in 2021 when it announced plans to provide BTC custodial services for institutional clients because of the rise in demand. BNY intensified the digital asset-related actions since then and it expanded its custodial features to Ireland before cooperating with SkyBridge to become the service provider for the BTC ETF that got rejected by the SEC.

The bank showed support for Grayscale as well as outlining the intentions to help the asset manager to convert its BTC trust into an exchange-traded fund. The SEC hasn’t made a decision yet on whether to approve the Grayscale application but the company vowed to sue the Commission if it gets rejected.

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