Key points to remember:
- Circle Selects BNY Mellon to Manage USDC Reserves
- BNY Mellon is one of the oldest financial institutions and largest custodian bank, with $46.7 trillion in assets under custody
- Circle and its stablecoin USDC have reached several notable milestones in recent months
USD Coin Issuer Circle Selects BNY Mellon as Lead Custodian for USDC Reserves
Circle, a crypto-focused financial services company behind the stablecoin USD Coin, announced that it has chosen BNY Mellon as the custodian of its USDC reserve holdings.
According to a press release, Circle chose BNY Mellon because of its market-leading status as the world’s largest depository bank and securities services company. With more than 230 years of experience in the financial markets, the New York-based bank is one of the oldest financial institutions in the world and held an astonishing $46.7 trillion in assets under custody as of the second quarter of 2021.
Roman Regelman, CEO of Asset Servicing and Head of Digital at BNY Mellon, commented on the rise of digitized assets in a statement:
“We are at a point in the evolution of our industry where the digitization of assets presents exciting new opportunities for a wide range of market players. BNY Mellon continues to provide products and services to players in this evolving market.
Regelman added that the bank, as the primary custodian of USDC reserves, intends to support the broader market and bring value to its customers.
Circle hit several milestones this year
The collaboration with BNY Mellon comes about a month after Circle announced a new merger agreement with special purpose acquisition firm Concord, which raised the company’s valuation to $9 billion. The merger is expected to be completed by December this year and will see Circle’s debut on the New York Stock Exchange (NYSE) under the symbol “CRCL”.
In February, the USDC issuer launched a revamped version of its business-oriented service to help businesses transact in crypto, called Circle Account. Earlier in the same month, USDC hit a major milestone by surpassing $50 billion in circulating supply for the first time, just weeks after overtaking Tether’s USDT to become the largest stablecoin on the market. Ethereum.
“As we continue to see exponential growth in USDC, the opportunity to work with BNY Mellon is a way to build bridges between traditional financial services and emerging digital asset markets, without sacrificing trust,” said noted Circle CEO Jeremy Allaire in a statement. “We will leverage our respective areas of expertise to innovate and build the financial ecosystem of the future,” he added.
David is a crypto enthusiast and personal finance expert. He has created numerous publications for different platforms. He loves exploring new things, and that’s how he discovered blockchain in the first place.