The largest custody bank in the world is introducing custody and minting services for USDC, further integrating stablecoins into mainstream finance.
By Krisztian Sandor|Edited by Cheyenne Ligon Jun 29, 2026, 2:46 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on BNY Mellon (Getty Images/Cheng Xin)SummaryShow- BNY will enable institutional clients to custody, mint, and redeem Circle's USDC via its digital asset platform.
- The bank intends to broaden its services to include more stablecoin issuers in the future.
- This initiative reflects a rising demand from traditional financial entities for structured stablecoin frameworks.
BNY Mellon, the leading custody bank with $59 trillion in assets, is strengthening its collaboration with Circle (CRCL) by enhancing its stablecoin offerings.
The bank announced on Monday that USDC will be the first stablecoin available on its Digital Asset Custody platform. Clients will have the ability to securely hold USDC at BNY and request Circle to convert U.S. dollars into USDC or redeem it back into dollars through the bank's services.
This expansion deepens BNY's involvement in the USDC ecosystem, where it already acts as the main custodian for the reserves that support the stablecoin. The new feature allows institutions to manage both their cash and digital assets on one platform.
BNY has stated that it will eventually support other stablecoin issuers.
This announcement comes at a time when stablecoins are gaining traction among banks and asset managers, especially following the enactment of the GENIUS Act in 2025, which established a federal framework for U.S. dollar-backed stablecoins. This legislation is anticipated to boost institutional adoption by providing clear guidelines for reserve assets, disclosures, and oversight of issuers.
In contrast to cryptocurrencies like bitcoin, stablecoins are intended to maintain a stable value linked to a fiat currency, usually the U.S. dollar, and are backed by cash and short-term U.S. Treasury securities. Initially used mainly by cryptocurrency traders on exchanges, they are increasingly being utilized for payments, international transfers, and securities settlements.
Institutions perceive significant potential for growth in this area. Standard Chartered forecasted that the stablecoin market could grow from approximately $300 billion today to $2 trillion by the end of 2028, while Citigroup projected it might reach $4 trillion by 2030 under its base scenario. Circle's USDC stands as the second-largest stablecoin, boasting a market cap exceeding $73 billion.
Carolyn Weinberg, chief product and innovation officer at BNY, stated, "As digital assets become increasingly integrated into financial markets, institutions need infrastructure that seamlessly works across traditional and blockchain-based systems."
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