BNY adds USDC minting and redemption to institutional custody
BNY adds USDC minting and redemption to its institutional Digital Asset Custody platform, letting clients store, transfer, mint, and burn Circle's USDC—the first stablecoin supported on the service. The move deepens BNY's partnership with Circle and extends its role as primary custodian of USDC reserves. Institutions can now convert dollars to USDC and redeem them back through the bank within one custody framework.
Key Takeaways
- BNY institutional clients can now mint, redeem, store, and transfer USDC through the bank's Digital Asset Custody platform.
- USDC is the first stablecoin supported on the platform; BNY plans to add more stablecoins and digital cash workflows.
- The expansion builds on BNY's existing role as primary custodian of the reserves backing USDC.
- BNY oversees $59.3 trillion in assets under custody and administration and serves more than 90% of Fortune 100 companies.
- The announcement joins a broader wave of stablecoin products from major financial institutions in 2026.
What did BNY add to its custody platform?
BNY announced on June 29, 2026, that it has expanded its Digital Asset Custody platform to support the full lifecycle of institutional USDC activity. Clients can hold USDC in digital asset custody wallets at BNY, transfer the stablecoin, and instruct Circle to mint USDC from U.S. dollars or redeem USDC back into dollars.
Circle's USDC is the first stablecoin on the platform. BNY said it plans to expand support to additional stablecoin issuers and digital cash workflows over time.
Why does this USDC minting move matter?
The integration creates a direct link between fiat and digital asset custody within a single institutional framework. Rather than managing cash and stablecoins through separate providers, BNY clients can oversee both through infrastructure they already use.
USDC is the world's second-largest stablecoin by market capitalization, with more than $73.8 billion in circulation, according to DefiLlama data cited by CoinTelegraph. For a custodian overseeing $59.3 trillion in assets and serving more than 90% of Fortune 100 companies, adding native mint and burn capability signals how deeply regulated stablecoins are moving into traditional finance.
How does this build on BNY's Circle partnership?
BNY already serves as the primary custodian of the assets backing USDC. The new client-facing services extend that relationship beyond reserve safeguarding to active stablecoin management.
In May, BNY also partnered with Abu Dhabi-based Finstreet and the ADI Foundation to develop institutional custody services for Bitcoin and Ether, with plans to later support stablecoins and tokenized real-world assets.
What broader stablecoin trend does BNY join?
BNY's announcement is the latest in a series of stablecoin-focused products from major financial institutions. In May, JPMorgan filed to launch a tokenized money market fund for stablecoin issuers, investing in U.S. Treasury bills and overnight repurchase agreements.
Earlier in June, State Street launched a government money market fund for stablecoin issuers aligned with the GENIUS Act. Bank of America has explored stablecoins for payments infrastructure, and Fidelity launched the US dollar-backed FIDD stablecoin after receiving conditional trust bank approval.
The stablecoin market is valued at approximately $313 billion, according to DefiLlama, with Tether's USDT accounting for about 60% of the market. For more on institutional crypto moves, see our Fintech & Crypto Alerts coverage. Read the full CoinTelegraph report for additional context.