BNY Mellon has been chosen as the custodian for USDC reserves by Circle

The company previously stated that it would keep its reserves in cash and treasuries.

Circle, the operator of the USD Coin (USDC), said on Thursday that it had chosen BNY Mellon as the custodian of its USDC assets. BNY Mellon was founded in 1784 and is one of America’s oldest banks, with about $46.7 trillion in assets under custody or management globally. It acts as a one-stop shop for clients who want to manage their money. BNY Mellon said it will look at the prospect of using digital cash for settlement as part of the new partnership. BNY Mellon’s Roman Regelman, CEO of asset servicing and head of digital, made the following comments:

“We’ve reached a point in our industry’s history when asset digitization offers new and exciting prospects to a wide spectrum of market participants. Our role as a custodian for USDC reserves benefits the larger market and adds value to customers, thanks to our unique position at the crossroads of trust and innovation.”

Meanwhile, Circle’s co-founder and CEO, Jeremy Allaire, said:

“As USDC continues to grow at an exponential rate, the opportunity to collaborate with BNY Mellon is one way we can build trust bridges between traditional financial services and burgeoning digital asset markets.”

With nearly $52 billion in circulation as of March 2022, USDC is one of the world’s fastest-growing dollar digital currencies. Last month, the total quantity of stablecoins reached $180 billion. The United States is one of the most stablecoin-friendly countries, with Federal Reserve Governor Jerome Powell previously expressing reservations about the establishment of a central bank digital currency, claiming that it would discourage innovation in the private stablecoin industry.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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