The Melon Bank in New York has added USDC casting, foreclosure, hosting and transfer functions to its digital asset hosting platform, where institutional clients can directly complete a two-way conversion between the United States dollar and USDC. This means that large institutions will be able to use the stability currency issued by Circe without having to leave the regulatory environment.
USDC access bank hosting platform
According to the bank, USDC is the first stable currency that the platform supports. The customer can exchange the United States dollar for USDC, or redeem the holdings of USDC into United States dollars and complete the holding and transfer within the same platform.
This also means that the scope of cooperation between Melon Bank in New York and Circle has expanded. Previously, the Melon Bank of New York, which had the main role in the hosting of USDC reserve assets, had now started to provide stable currency access directly to its clients.
Institutional clients can operate within the banking system
According to Melon Bank in New York, its hosting and management assets amounted to 59.3 trillion dollars and served over 90 per cent of the Fortune 100 companies. As the USDC function becomes online, institutional customers can access the stable currency through traditional banking channels without having to turn to independent encryption platforms or chain service providers.
In terms of market size, the DefiLlama data show that USDC is currently in circulation of over $73.8 billion, the second largest stable currency on the market. The USDT remains at the top, with the total stable currency market of approximately $313 billion.
Large financial institutions plus stable currency infrastructure
The Melon Bank in New York also indicated that it would continue to support more stable currency and digital cash flow in the future, but did not disclose which assets would be accessed at the next stage and did not provide a clear timetable.
This move is also in line with the recent deployment of traditional financial institutions. Last week, Kyung-soon submitted an application to the US SEC for the introduction of a monetized money market fund for stable currency reserve management, with investments in cash and short-term US Treasury debt.
Morgan Chase submitted a similar product application in May this year, planning to launch a monetized currency market fund based on the Taifung, for stable currency issuers, with bottom assets including United States Treasury bills and overnight buy-back agreements. The Bank had also launched the Government Monetary Market Fund for stable currency issuers earlier in the month.
Overall, large banks and regulators are focusing their operations on stable currency reserves, custodianships and payment levels. This time, Melon Bank, New York, incorporated USDC foundry and foreclosure into the hosting platform, further embedding the stabilization currency activity into the clearing and asset-keeping system already used by institutional clients.