Circle has named BNY Mellon as the primary custodian for the reserves of its USD Coin (USDC) stablecoin.
Building trust, stability and resilience in the digital asset economy is foundational to our mission. Alongside @BNYMellon we’re creating a stable and resilient financial ecosystem for the future.https://t.co/Asq1yzgM7w
— Circle (@circlepay) March 31, 2022
“Working with BNY Mellon is one way to bridge traditional financial services and developing digital asset markets without compromising trust,” said Circle co-founder and CEO Jeremy Allaire.
The collaboration envisages sharing expertise in areas such as the integration of traditional and digital capital markets, investment management, custody of digital assets, treasury management in fiat and in crypto, and the use of stablecoins in settlements.
According to CoinGecko, the market capitalization of USDC stands at $51.5 billion, versus the leader (USDT) at $82.1 billion. The gap between stablecoins had been narrowing since September 2020. In January 2022 the supply of USDC on the Ethereum blockchain first surpassed the leader USDT.
In addition to Ethereum, Circle supports USDC in the networks Algorand, Solana, Stellar, Tron, Hedera Hashgraph, Avalanche and Flow. The company announced the creation of a “global network of stablecoins.”
Circle valued at $9 billion as part of an updated merger agreement with SPAC. The shares will be listed on the New York Stock Exchange under ticker CRCL.
In August 2021 Circle promised to restructure into a commercial cryptocurrency bank. In the same move, the company and its Centre consortium partner — the exchange Coinbase — agreed to transfer the reserves of the stablecoin fully into dollars and U.S. Treasuries.
Such steps followed proposals to be issued by the Working Group on Financial Markets under the US president to treat stablecoin issuers as banks.
Back in February 2021, BNY Mellon, among the first among large financial institutions, created a custody platform for digital assets. The holding later entered into a partnership with Chainalysis.
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