The two sides will work together to facilitate an ” exchange of expertise on a range of topics in digital and traditional markets.” This includes various topics such as bridging legacy and Digital Capital Markets, Investment Management, custody of digital assets, cash management for fiat and non – fiat payments, and ” the exploration of digital cash for settlement purposes.” The CEO of Asset Servicing and head of Digital at the bank, Roman Regelman, said the following about the new partnership:
“Our role as custodian of USDC reserves supports the broader market and provides value to customers, based on our role at the intersection of trust and innovation.”
In turn, Circle co-founder Jeremy Allaire added that the partnership with BNY allows their company to “build bridges between traditional financial services and emerging markets for digital assets, without sacrificing trust.”
Worldwide, USDC is one of the fastest growing stablecoins with a market capitalization of more than $50 billion. With this, it is generally the fifth largest cryptocurrency by market capitalization. Only the stablecoin Tether (USDT) is higher than USDC in the ranking of stablecoins.
In the United States, the Bank of New York Mellon (BNY Mellon) is the oldest banking organization. The bank was founded at the end of the 18th century and is still active in the same sector today. At the beginning of 2021, the bank plunged into the crypto industry, when it announced its plans to provide Bitcoin (BTC) custody services to its institutional clients, citing increased demand.
Since then, the bank has expanded its crypto-related activities. For example, the bank expanded its crypto custody functions to Ireland before saying it will partner with SkyBridge to become the service provider for its Bitcoin ETF. However, this ETF was later rejected by the SEC.
Then the bank showed its support for Grayscale, setting out its intentions to help the world’s largest digital asset manager turn its Bitcoin Trust into an exchange-traded fund. No decision has yet been made by the SEC. It is not yet certain whether this Bitcoin Trust will be approved or not.