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BNY has expanded its digital asset custody platform to support Circle’s USDC, giving institutional clients a way to hold, transfer, mint and redeem the stablecoin through the bank.
The addition brings USDC into one of the world’s largest custody banks as financial firms look for simpler routes between cash accounts and tokenized dollar settlement.
USDC is BNY’s First Supported Stablecoin
USDC is the first stablecoin added to BNY’s Digital Asset Custody platform.
Institutional clients will be able to hold USDC in digital asset custody wallets at BNY and transfer the token through the platform. The service is expected to go live by the end of July.
Clients Can Mint and Redeem USDC
BNY said clients will also be able to instruct Circle to mint USDC from U.S. dollars and redeem USDC back into dollars.
That brings the creation and redemption process into the custody workflow, instead of leaving institutions to manage those steps through separate systems.
The setup gives clients a direct link between fiat cash and tokenized dollars inside one institutional framework.
Dollar Flows Connect to Token Custody
Minting converts U.S. dollars into new USDC. Burning removes USDC from circulation when clients redeem the token for dollars.
For institutions, those steps are central to using stablecoins for settlement, trading, treasury activity and payment flows. BNY already serves as custodian for the majority of USDC reserves.
The expanded service gives the bank a bigger role in the token’s operating chain, covering reserve custody, digital asset custody and client access to minting and redemption.
Circle Keeps USDC Issuance Role
Circle remains the issuer of USDC and provides the minting and redemption rails behind BNY’s new service. The company said Circle Mint is available only to institutions and is not a bank account.
It also said funds held through the service are not insured by the FDIC, SIPC or any government insurance fund.
That distinction matters as banks move closer to stablecoin activity without becoming token issuers. In this case, BNY is providing custody and client access, while Circle continues to handle issuance and redemption.
BNY Plans More Stablecoin Support
BNY said it plans to support more stablecoin issuers and digital cash workflows over time. The bank oversees $59.4 trillion in assets under custody or administration and $2.1 trillion in assets under management, giving the launch reach across institutional markets if clients adopt the service.
For now, the change gives BNY clients a bank-grade custody route into USDC and gives Circle another link to traditional finance as stablecoin use expands across custody, settlement and treasury workflows.
