- BNY adds full USDC lifecycle services for institutional clients directly.
- Circle strengthens longstanding partnership with BNY through expanded custody capabilities.
- Bank plans additional stablecoin support beyond USDC over time gradually.
Bank of New York Mellon has added full USDC lifecycle services to its Digital Asset Custody platform through an expanded partnership with Circle. Institutional clients can now custody, transfer, mint, and redeem USDC directly through BNY. According to a press release, USDC becomes the first stablecoin supported on the bank’s digital custody platform.
The expanded offering allows institutional clients to hold USDC inside BNY digital custody wallets while managing the stablecoin through a single banking relationship. Clients can also instruct the bank to convert U.S. dollars into newly minted USDC or redeem existing USDC back into dollars. Consequently, institutions gain a more direct connection between traditional banking services and blockchain-based assets.
Circle and BNY have maintained a long-standing relationship through USDC reserve management. This latest expansion extends that partnership by bringing additional stablecoin capabilities into BNY’s institutional digital asset infrastructure.
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Expanded custody services strengthen institutional stablecoin access
According to the announcement, the new service combines custody, transfers, minting, and redemption within BNY’s Digital Asset Custody platform. That integration removes the need for institutions to coordinate these functions across multiple service providers. Moreover, it gives clients a streamlined process for moving between traditional currency and digital assets.
Circle Chief Commercial Officer Kash Razzaghi said the inclusion of USDC reflects the regulatory standards the company established from the beginning. He added that BNY has consistently been an early destination for institutional finance. He also noted that the expanded partnership allows clients to connect on-chain assets with traditional financial infrastructure they already trust.
Meanwhile, BNY confirmed that USDC will not remain the platform’s only supported stablecoin. The bank plans to introduce additional stablecoin issuers over time, although it did not provide a timeline for future integrations.
The announcement also builds on BNY’s broader digital asset strategy. Earlier this year, the bank launched a tokenized deposit service for six institutional clients, including ICE and Citadel Securities. Additionally, BNY remains one of the first major Wall Street institutions to provide regulated digital asset custody services across the United States and other markets.
Beyond its custody business, BNY also supports the majority of spot Bitcoin and Ethereum exchange-traded funds. That role has strengthened its position as traditional financial institutions continue expanding into digital assets.
Conclusion
The expanded partnership gives institutional clients broader access to USDC through a regulated banking platform. By combining custody, transfers, minting, and redemption under one service, BNY and Circle continue strengthening the connection between conventional finance and blockchain-based payments.
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