Boston-based Circle Internet Financial has announced the company has selected BNY Mellon to custody the firm’s usd coin (USDC) reserves. The company’s dollar-pegged crypto asset is currently the second-largest stablecoin with a current market capitalization of $51.6 billion.
BNY Mellon to Become USDC’s Primary Custodian
Circle has chosen America’s oldest investment bank to custody the firm’s usd coin (USDC) reserves, according to an announcement published on March 31. While BNY Mellon will become the primary custodian for USDC, Circle expects the partnership to further “facilitate an exchange of expertise on a range of topics across digital and traditional markets.”
According to the announcement made Thursday, the new relationship between Circle and BNY Mellon will bring the following benefits:
The bridging of traditional capital markets and digital capital markets. Investment management. Digital asset custody. Cash management. Exploration of digital cash to settle.
USDC (under tether) is currently the second-largest stablecoin. It is also pegged to USDT’s dollar price. USDC’s 24-hour global trade volume has reached $4.38 trillion. Additionally, USDC has experienced a remarkable growth in the last twelve months.
On March 31, 2021, USDC’s market capitalization was $10.8 billion and it’s grown 377.77% since last year to $51.6 billion. Today, USDC’s most dominant trading pairs include USDT, USD, BUSD, WETH, and EUR respectively.
During the announcement concerning Circle selecting BNY Mellon as USDC’s primary custodian, BNY Mellon executive Roman Regelman said that the finance industry faces an evolutionary turning point.
“We 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,” Regelman, the CEO of asset servicing and head of digital at BNY Mellon said.
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