Circle selects BNY Mellon as custodian for USDC reserves

On Thursday, currency USD (USDC) Circle operator Announced that it had selected the financial institution BNY Mellon as the custodian of its USDC reserves. Founded in 1784, BNY Mellon is one of the oldest banks in the United States with more than $46.7 trillion in assets under custody or administration worldwide. It serves as a single point of contact for clients looking to manage their investments. With the new partnership, BNY Mellon said it will also explore the possibility of using digital cash for settlement purposes. Roman Regelman, CEO of asset servicing and head of digital at BNY Mellon, made the following comments:

“We are at a point in our industry evolution where asset digitization presents new and exciting opportunities for a wide range of market participants. As custodian of USDC reserves, our role supports the broader market and adds value to customers, founded on our role at the intersection of trust and innovation.

Meanwhile, Jeremy Allaire, co-founder and CEO of Circle, added:

"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."

USDC is one of the fastest growing dollar digital currencies globally with over $52 billion in circulation as of March 2022. As previously reported by Cointelegraph, the total stablecoin supply it hit $180 billion last month. The United States is one of the most regulation-friendly countries around stablecoins, and Fed Governor Waller previously expressed skepticism about the adoption of a central bank digital currency, saying that potentially stifle innovation in the private stablecoin sector.