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BNY Adds USDC Lifecycle
BNY expanded its Digital Asset Custody platform for institutional clients by adding Circle’s USDC minting and redemption, letting clients convert U.S. dollars into USDC through BNY and redeem USDC back into dollars through the same setup.
“USDC will become the first stablecoin supported on its Digital Asset Custody platform”
CoinDesk said USDC will become the first stablecoin supported on BNY’s Digital Asset Custody platform, and that clients can “hold USDC in custody at BNY” while instructing Circle to convert dollars into the stablecoin or redeem USDC back into dollars.
The service is described as building on BNY’s existing role as the primary custodian of the reserves backing USDC, and it is positioned as a broader step into blockchain-based cash infrastructure rather than custody alone.
CoinDesk also reported that BNY plans to support additional stablecoin issuers over time, extending the Circle relationship beyond reserves safeguarding into client-facing stablecoin functions.
In the same announcement, BNY said it plans to expand the service to additional stablecoin issuers over time, with USDC as the first supported asset on the platform.
Scale, Regulation, and Numbers
Multiple outlets tied the BNY-Circle move to the bank’s scale, with CoinDesk stating BNY is the world’s largest custody bank overseeing $59 trillion in assets.
CoinDesk also placed the announcement in a regulatory context, saying it comes after the 2025 passage of the GENIUS Act, which established a federal framework for U.S. dollar-backed stablecoins and set rules for reserve assets, disclosures and issuer oversight.
The Block reported that Circle’s USDC will become the first supported asset on BNY’s Digital Asset Custody platform, and it said the service initially supports USDC issued on Ethereum and Solana.
CoinDesk described stablecoins as designed to maintain a fixed price pegged to a fiat currency, typically to the U.S. dollar and backed with cash and short-term U.S. Treasuries, contrasting them with cryptocurrencies such as bitcoin.
CoinDesk added that Circle’s USDC is the second-largest stablecoin with a market capitalization of over $73 billion, framing the integration as stablecoin services moving deeper into traditional finance.
What Comes Next for Institutions
BNY’s USDC integration is presented as enabling institutional clients to manage cash and digital assets through a single platform, with CoinDesk saying clients can “manage both their cash and digital assets through a single platform.”
“manage both their cash and digital assets through a single platform”
CoinDesk reported that BNY plans to support additional stablecoin issuers over time, and it framed the move as reflecting growing demand from traditional financial institutions for regulated stablecoin infrastructure.
FinanceFeeds similarly described the new service as allowing clients to convert U.S. dollars into USDC and redeem USDC back into dollars through BNY while holding and transferring the stablecoin within the bank’s custody environment.
FinanceFeeds also said BNY oversees $59.3 trillion in assets under custody and administration and serves more than 90% of Fortune 100 companies, positioning the bank’s role as extending from reserve safeguarding into transaction infrastructure.
The Block added that BNY said it plans to add support for additional stablecoin issuers over time, while Circle Chief Commercial Officer Kash Razzaghi said the integration gives BNY clients connectivity between on-chain and traditional assets within infrastructure they already trust.
