BNY has added USDC mining, redemption, custody and transfer services to its digital asset custody platform, giving institutional clients direct access to the Circle stablecoin through the bank.
summary
- BNY has enabled institutional clients to mint, redeem, store and transfer USDC directly through its digital asset custody platform.
- The bank has expanded its role with Circle beyond protecting USDC reserves by adding customer-facing stablecoin services.
- BNY joins Invesco, JPMorgan and State Street as major financial institutions offering products tied to stablecoin reserves and infrastructure.
According to BNY, to update It allows customers to convert USD to USDC and redeem the stablecoin back into dollars from within its platform. Customers can also hold and transfer USDC through its digital asset custody service, making the Circle token the first stablecoin supported by the platform, the bank said.
The service deepens the existing relationship between BNY and Circle. BNY already serves as a primary custodian of assets backing USDC, and the recent expansion moves the bank beyond reserve custody into direct stablecoin services for institutional clients.
BNY said it plans to add support for more stablecoins and digital cash workflows over time. The bank did not name the next assets it might support or give a timeline for expansion.
BNY is taking USDC deeper into institutional custody
BNY said it oversees $59.3 trillion in assets under custody and management and serves more than 90% of Fortune 100 companies. USDC support gives large institutions a bank-based path to access and redeem stablecoins without moving outside of a regulated custody environment.
USDC is the second-largest stablecoin by market capitalization, with more than $73.8 billion in circulation, according to DefiLlama data. Tether’s USDT remains the largest stablecoin, while DefiLlama’s Data It puts the total stablecoin market at around $313 billion.
This announcement also comes on the heels of BNY’s recent work in other areas of digital asset custody. In May the bank a partner With Abu Dhabi-based Finstreet and ADI Foundation to develop institutional custody services for Bitcoin and Ethereum, with plans to include stablecoins and tokenized real assets later.
By adding USDC mining and redemption to its platform, BNY places stablecoin activity closer to the custody and settlement systems already used by institutional clients. Circle’s role remains tied to USDC issuance, while the expanded BNY service gives clients the tools to custody and move around the token.
Banks build products for stablecoin reserves
BNY’s move comes at a time when major financial companies are developing products tied to stablecoins, reserve assets and token cash management.
Last week, Invesco foot With the US Securities and Exchange Commission to launch a tokenized money market fund to manage stablecoin reserves. According to the filing, the fund will invest in cash and short-term U.S. Treasury securities.
In May, JP Morgan submitted an application to… He releases A tokenized money market fund designed for stablecoin issuers. The Ethereum-based fund will invest in US Treasuries and overnight repurchase agreements used to support stablecoin payments.
State Street also launched a government money market fund for stablecoin issuers earlier this month. the finance It invests in US government securities and repurchase agreements, with State Street Bank and Anchorage Digital listed among its early investors.
Other financial companies have also moved into stablecoin-related services. In January, Fidelity Investments Fired Its USD-backed stablecoin FIDD after receiving conditional approval to operate a national trust bank.
Together, the announcements show how major banks and asset managers are building around the reserve, custody and payment layers of stablecoins as institutional demand for digital cash infrastructure grows.
