BNY Mellon now offers custody service for Circle’s USD Coin

abdelaziz Fathi

Boston-based stablecoin issuer Circle has selected BNY Mellon, which oversees about $47 trillion in assets, as a primary custodian for reserves of its USD Coin.

USD Coin

America’s oldest bank has set up a new unit dedicated to providing its clients with ‘an integrated service’ for digital assets. Upon launch, BNY customers were able to store Bitcoin and Ether in its crypto wallets which are powered by Fireblocks technology. The new offering targets native crypto firms, like Coinbase and other US exchanges, who are looking for BNY Mellon’s core investment services.

Citing growing client demand, maturity of blockchain and better regulatory clarity, the custodian bank states that even conservative clients are seeking exposure to digital assets.

Circle has been expanding the reach of the offering that is primarily focused on retail trading and investing to appeal for B2B partnerships. Currently, the crypto unicorn puts greater emphasis on its USD Coin (USDC), a stablecoin pegged to the US dollar. Furthermore, Circle also opens the doors of its stablecoin to businesses with a dedicated account that provides a toolbox of APIs to allow developers to build on top of USDC.

Acting as a sort of safe haven where crypto traders can park their assets in volatile markets, USDC is an Ethereum-based ERC-20 coin, which makes it easy for wallets, exchanges and other smart contracts to interact with the token.

With nearly $50 billion worth of tokens in circulation, USDC continues its remarkable trajectory, growing 10x over the course of 2021. Currently available on 8 blockchains, the coin has its ecosystem already integrated into more than 200 exchanges, platforms, wallets, and service providers.

BNY ventured into the crypto space in 2019

“As we continue to see exponential growth in USDC, the opportunity to work with BNY Mellon is one way we build bridges between traditional financial services and emerging digital asset markets, without sacrificing trust. Together, we will leverage our respective areas of expertise to innovate and build the financial ecosystem of the future,” said Jeremy Allaire, Co-Founder and CEO at Circle.

“Our role as a custodian for USDC reserves supports the broader marketplace and brings value to clients, founded on our role at the intersection of trust and innovation,” added Roman Regelman, CEO of Asset Servicing and Head of Digital at BNY Mellon.

BNY Mellon is developing a prototype that will eventually allow cryptocurrencies to pass through the same financial network it currently uses for investments in traditional assets like bonds and stocks. The bank ventured into the crypto space earlier in 2019 when it partnered with Bakkt, which created the first federally regulated cryptocurrency marketplace, to offer geographically-distributed storage of private keys secured by the bank.

Consequently, BNY and Bakkt have set up a crypto-custody service, under which the Wall Street bank’s history of safeguarding the assets of institutional clients is leveraged to store Bakkt’s digital assets.

Interestingly though, BNY Mellon was accused of playing a central role in the OneCoin cryptocurrency scam. FinCEN files showed the bank processed funds worth a total of $137 million for companies and people associated with the $4 billion Ponzi scheme.

Read this next

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

<