On Thursday, U.S. Dollar Coin (USDC) operator Circle announced that it had selected financial institution Bank of New York Mellon as the custodian of its USDC reserves. Founded in 1784, the Bank of New York Mellon is one of the oldest banks in the United States, with more than $46.7 trillion in assets under custody or management worldwide. It provides a single point of contact for clients looking to manage their investments. Through the new partnership, BNY Mellon said it will also explore the possibility of using digital cash for settlements. Roman Regelman, CEO and Head of Digital, BNY Mellon Asset Services, made the following comments:
“We are at a stage in the evolution of the industry where the digitization of assets opens up new and exciting opportunities for a wide range of market participants. As custodians of USDC reserves, our role supports the wider market and brings value to our clients , established about our role at the intersection of trust and innovation.”
Meanwhile, Circle co-founder and CEO Jeremy Allaire added:
“As we continue to see exponential growth in USDC, the opportunity to partner with BNY Mellon is one way we can bridge the gap between traditional financial services and emerging digital asset markets without sacrificing trust.”
USDC is one of the fastest growing U.S. dollar digital currencies in the world, with more than $52 billion in circulation as of March 2022. As previously reported by Cointelegraph, the total stablecoin supply reached $180 billion last month. The U.S. is one of the countries most friendly to stablecoin regulation, and Federal Reserve Governor Waller has previously expressed doubts about the adoption of central bank digital currencies, saying it could stifle innovation in the private stablecoin space.