USDBNY Adds USDC Custody, Minting and Redemption for Institutions
Circle partnership expands as stablecoins move deeper into Wall Street infrastructure
TL;DR
- BNY is adding USDC custody, transfer, minting and redemption services for institutional clients.
- USDC is the first stablecoin supported on BNY’s Digital Asset Custody platform.
- The expansion builds on BNY’s existing role as primary custodian of assets backing USDC reserves.
Trade smarter on Jupiter, Solana’s leading DEX built for fast execution and deep liquidity.
Swap tokens at competitive rates, route across multiple liquidity sources automatically, and access perpetuals, DCA, and advanced trading tools — all in one place!
BNY announced on June 29, 2026, that it is expanding its stablecoin services for institutional clients by adding custody, transfer, minting and redemption support for Circle’s USD Coin on its Digital Asset Custody platform.
The launch makes USDC the first stablecoin supported on BNY’s Digital Asset Custody platform. The service will allow institutional clients to hold USDC in custody at BNY, convert U.S. dollars into USDC and redeem USDC back into U.S. dollars directly through the bank.
BNY’s expanded service also lets clients store and transfer USDC through the custody platform, giving institutions a bank-based workflow for managing cash and digital-dollar activity. BNY plans to expand the service to additional stablecoins, digital cash workflows and stablecoin issuers over time.
Carolyn Weinberg, chief product and innovation officer at BNY, said the service reflects growing institutional demand for infrastructure that connects conventional markets with blockchain-based systems. “As digital assets become increasingly integrated into financial markets, institutions need infrastructure that seamlessly works across traditional and blockchain-based systems,” Weinberg said.
We’ve launched the all-new COIN360 Perp DEX, built for traders who move fast!
Trade 130+ assets with up to 100× leverage, enjoy instant order placement and low-slippage swaps, and earn USDC passive yield while climbing the leaderboard. Your trades deserve more than speed — they deserve mastery.
BNY Moves From Reserve Custody Into Client-Facing USDC Services
BNY already serves as the primary custodian of the assets backing USDC reserves, and the new service expands that relationship into direct institutional access to the stablecoin. The move shifts BNY’s Circle relationship beyond reserve safeguarding and into client-facing stablecoin operations, allowing institutions to interact with USDC through BNY rather than only through crypto-native infrastructure.
BNY is described as the world’s largest custody bank. which oversees $59 trillion in assets. BNY also serves more than 90% of Fortune 100 companies, placing the USDC rollout inside a major traditional financial infrastructure provider rather than a niche digital-asset platform.
At $73.8 billion in circulation, USDC is the world’s second-largest stablecoin by market capitalization.
Stablecoins are described as digital assets designed to maintain a fixed price pegged to fiat currency, typically the U.S. dollar. The assets are typically backed by cash and short-term U.S. Treasuries, and their use has expanded from crypto exchange trading into payments, cross-border transfers and securities settlement.
Stablecoin Infrastructure Expands After U.S. Rules Take Shape
The rollout comes after passage of the GENIUS Act in 2025, which established a U.S. federal framework for U.S. dollar-backed stablecoins. The law is described as setting rules for reserve assets, disclosures and issuer oversight, and the new framework is widely expected to accelerate institutional stablecoin adoption.
BNY’s move follows its May 2026 partnership with Abu Dhabi-based Finstreet and the ADI Foundation. That partnership focused on developing institutional custody services for Bitcoin and Ether, with plans to later support stablecoins and tokenized real-world assets.
Other major financial institutions have also pursued stablecoin-related products. JPMorgan filed in May 2026 to launch an Ethereum-based tokenized money market fund that would allow stablecoin issuers to hold reserve assets in a regulated investment vehicle while earning interest.
JPMorgan’s proposed fund is designed to invest in U.S. Treasury bills and overnight repurchase agreements backing payment stablecoins. The filing places JPMorgan’s effort in the reserve-management side of the stablecoin market, while BNY’s USDC service focuses on institutional custody, minting, redemption and transfer access.
State Street launched a government money market fund for stablecoin issuers earlier in June 2026. The fund invests in U.S. government securities and repurchase agreements, and counts State Street Bank and Anchorage Digital among its initial investors.
Bank of America said in July 2025 that it was exploring stablecoins to modernize its payments infrastructure. Fidelity Investments launched a U.S. dollar-backed stablecoin called FIDD in January 2026 after receiving conditional approval to operate a national trust bank.
BNY’s USDC expansion adds another traditional finance institution to the stablecoin infrastructure race. The service gives institutional clients a regulated bank interface for USDC activity while keeping minting, redemption, custody and transfer functions within BNY’s digital asset platform.
FAQ
What did BNY announce?
BNY added USDC custody, transfer, minting and redemption services for institutional clients.
Which stablecoin is supported first?
USDC is the first stablecoin supported on BNY’s Digital Asset Custody platform.
Who issues USDC?
Circle issues USDC.
What is BNY’s existing role with USDC?
BNY is the primary custodian of assets backing USDC reserves.
This article has been refined and enhanced by ChatGPT.
