US banking giant BNY is to allow clients to send money to and from stablecoin specialist, Circle Internet Group.
The news comes just days after the US Treasury’s independent bureau responsible for protecting America’s national banking system confirmed that certain cryptocurrency activities are now permissible within traditional federal banking rules.
In a statement, a BNY spokesperson said: “BNY and Circle continue to work to bridge the gap between traditional and digital finance.”
The company said it was “exploring how to deepen” it relationship with Circle to benefit financial markets.
The latest development with Circle comes three years after the two companies first confirmed they were collaborating, with Circle choosing BNY to be its primary custodian for USD Coin (USDC) reserves.
At the time, Circle and BNY issued a joint announcement confirming they would begin working more closely together to “facilitate an exchange of expertise on a range of topics.”
Since then, the two companies have worked on projects across digital and traditional markets, including digitalised capital markets, asset management, digital asset custody, cash management for fiat and non-fiat payments, and digital cash for purposes of settlement.
In its annual report to shareholders, released last week, BNY said that investors are increasingly seeking out new asset classes, additional transparency and more personalised solutions at lower cost.
“Digital assets are just one example of a new investment vehicle in which we see significant long-term potential,” the company said.
“As early adopters, we have focused on digital assets and tokenisation, emphasising regulatory clarity for innovation and client safety. Last year, we saw the mass adoption of digital asset exchange traded products in the US, which grew to more than $100bn in AUM in less than a year.”
The company said it now provides fund services for “the vast majority of these products” in the US and Canada.
