Melon Bank, New York, is further integrating stabilization currency services into institutional operations. The bank indicated that the USDC issued by Circle would be the first stable currency to be supported by its digital asset hosting platform, through which institutional clients could hold, found and redeem USDC.

A platform to handle two types of assets

This arrangement means that clients can manage both United States dollar funds and digital assets at Melon Bank in New York. Clients can convert the United States dollar to USDC and redeem USDC to United States dollars, and the process is done through the Bank ' s collaboration with Circe.

Melon Bank in New York is now the main custodian of the USDC reserve assets. With this new hosting, casting and foreclosure function, the Bank ' s role in the USDC system has been further expanded to no longer be solely responsible for the custody of reserve assets, but also to take over the institutional end of the stable currency entry.

USDC First Access

The Bank stated that USDC was the first stable currency to be supported by its digital asset hosting platform and that it planned to access more of the issuers. This suggests that its currency stabilization operations will not remain in a single partner, but are intended to extend to broader institutional needs.

By disclosure, the Bank of Melon in New York manages assets of approximately $59 trillion, one of the largest custodian banks in the world. For large custodians, stabilization currency services move from a single custodian to a combination of transactions and liquidation, indicating that the link between traditional financial infrastructure and chain assets is deepening.

New law in the U.S. needs to warm up.

This progress has also followed the gradual evolution of the United States stable currency regulatory framework. The report mentions that the GENIUS Act, adopted in 2025, has established a federal-level regulatory framework for the dollar stabilization currency covering reserve assets, information disclosure and issuer control.

As rules become clearer, the demand for a compliance and stabilization currency infrastructure by banks and regulators is rising. The early years of the stabilization currency, which was used mainly for encrypted transactions, are now being used by more agencies to pay for, cross-border transfers and securities settlements.

  • It's estimated that the market at the end of 2028 was $2 trillion.
  • Citigroup baseline scenario projected to rise to $4 trillion in 2030
  • USDC's current market value exceeds $73 billion

Carolyn Weinberg, Director of Products and Innovation, Melon Bank, New York, stated that as digital assets enter financial markets deeper, institutions need infrastructure that can connect both traditional systems and block-chain systems.