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Circle selects BNY Mellon as custodian of USDC reserves

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On Thursday, USD Coin (USDC) operator Circle announced that it has selected financial institution BNY Mellon to be its custodian of its USDC reserves. Founded in 1784, BNY Mellon is one of the oldest banks in America with over $46.7 trillion in assets under custody or under management worldwide. It serves as a one-stop shop for customers who wish to manage their assets. With the new partnership, BNY Mellon also wants to explore the possibility of using digital cash for billing purposes. Roman Regelman, CEO Asset Servicing and Head of Digital at BNY Mellon, commented:

“We are at a point in the evolution of our industry where the digitization of assets is presenting new and exciting opportunities to a wide range of market participants. As custodian of USDC reserves, our role supports the broader market and brings value to customers through 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 at USDC, the opportunity to partner with BNY Mellon is an opportunity to build bridges between traditional financial services and emerging digital asset markets without sacrificing trust.”

USDC is one of the fastest growing digital dollar currencies in the world with over $52 billion in circulation (as of March 2022). As previously reported by Cointelegraph, total stablecoin supply hit $180 billion last month. The United States is one of the most regulation-friendly countries when it comes to stablecoins, with Fed Governor Waller previously expressing skepticism about launching a central bank digital currency, saying it would potentially stifle innovation in the private stablecoin sector.