People familiar with the matter: Bank of New York Mellon is expanding its services to stablecoin issuer Circle

PANews March 13th news, according to The Information, Bank of New York Mellon (BNY) is expanding its services to stablecoin issuer Circle as banks warm up. The bank will allow some customers to send money to Circle via BNY to purchase or sell Circle's stablecoins, people familiar with the matter said. Previously, Circle's customers had to use small U.S. banks to send money to Circle, which could limit the scale of the stablecoin company's growth.

This new arrangement helps the creation and redemption of Circle's stablecoins, which can help New York-based Circle push other traditional financial institutions to adopt more broadly its dollar-pegged stablecoins. "BNY and Circle will continue to work to bridge the gap between traditional finance and digital finance and explore how to deepen our relationship to benefit financial markets," the two companies said in a joint statement. The changes will help make Circle more attractive to investors before a possible initial public offering (IPO).

The collaboration with BNY is worth noting because the company is the Global Systematic Importance Bank (G-SIB), a regulatory name that puts it under particularly strict regulation. Using large American banks like BNY is one way for Circle to distinguish itself from competitors like Tether. BNY has been approved by the New York State Department of Financial Services to provide a wider range of payment services to Circle, some people familiar with the matter said. By providing services to Circle, BNY may also attract more crypto-related deposits. The company has been discussing banking services with more crypto companies, but is cautious and only working with the safest companies, people familiar with the matter said.