BNY Adds USDC Minting And Redemption To Custody Platform

BNY has expanded its Digital Asset Custody platform to let institutional clients store, transfer, mint and redeem Circle’s USDC, making it the first stablecoin supported on the platform. Clients can now convert dollars into USDC and redeem it back into cash directly through the bank, alongside storing and transferring the token. BNY said it plans to add more stablecoins and digital cash features over time.

This builds on BNY’s existing role as the primary custodian of assets backing USDC, expanding its Circle relationship beyond reserve safekeeping into client-facing services. BNY oversees $59.3 trillion in assets and serves over 90% of Fortune 100 companies. USDC remains the world’s second-largest stablecoin, with more than $73.8 billion in circulation. In May, BNY also partnered with Abu Dhabi’s Finstreet and the ADI Foundation on institutional Bitcoin and Ether custody, with stablecoin support planned for later.

Traditional Finance Keeps Building Stablecoin Infrastructure

BNY’s move joins a growing wave of bank-led stablecoin products. JPMorgan filed in May to launch a tokenized money market fund on Ethereum, letting stablecoin issuers hold reserves while earning interest. State Street launched a GENIUS Act-compliant government money market fund this month, with State Street Bank and Anchorage Digital among its first investors.

Bank of America has been exploring stablecoins since mid-2025, and Fidelity launched its own dollar-backed stablecoin, FIDD, in January after securing conditional approval for a national trust bank. The total stablecoin market sits around $313 billion, with Tether’s USDT holding about 60% of the share.