BNY adds Circle's USDC to $59T custody platform for institutional minting

BNY, the world's largest custody bank overseeing $59 trillion in assets, will let institutional clients custody, mint and redeem Circle's USDC stablecoin through its Digital Asset Custody platform, the bank said Monday.

"Digital assets are becoming increasingly integrated into financial markets, and institutions need infrastructure that seamlessly works across traditional and blockchain-based systems," Carolyn Weinberg, chief product and innovation officer at BNY, said.

USDC, the second-largest stablecoin with a market capitalization of more than $73 billion, is the first stablecoin supported on the platform. BNY already serves as the primary custodian of the reserves backing USDC. The bank plans to expand the service to additional stablecoin issuers over time, according to the announcement.

The move follows the 2025 passage of the GENIUS Act, the U.S. law establishing a federal framework for dollar-backed stablecoins that set rules for reserve assets, disclosures and issuer oversight. Standard Chartered projected the stablecoin market could expand from roughly $300 billion to $2 trillion by the end of 2028, while Citigroup estimated it could reach $4 trillion by 2030 in its base case.

What the integration means for institutions

The new offering lets institutions manage both cash and digital assets through a single platform, eliminating the need to maintain separate relationships for fiat and crypto custody. Clients can instruct Circle to convert U.S. dollars into USDC or redeem USDC back into dollars through BNY, effectively making the bank a gateway between traditional banking rails and blockchain-based settlement.

Unlike cryptocurrencies such as bitcoin, stablecoins are designed to maintain a fixed price pegged to a fiat currency, typically the U.S. dollar, and are backed with cash and short-term Treasuries. Originally used primarily by crypto traders on exchanges, they are increasingly finding broader applications in payments, cross-border transfers and securities settlement.

Why this matters for the stablecoin market

BNY's expansion into stablecoin services represents a significant validation of the asset class by the traditional financial system's most established infrastructure provider. As the largest custody bank globally, BNY's decision to offer USDC minting and redemption directly positions stablecoins as a core component of institutional treasury operations rather than a niche crypto product.

The integration also pressures competing custody banks — including State Street and JPMorgan — to accelerate their own digital asset offerings or risk losing institutional clients seeking unified cash-and-crypto platforms. With the GENIUS Act providing regulatory clarity, more banks are expected to enter the stablecoin services market in the coming quarters.

This article is for informational purposes only and does not constitute investment advice.