BNY, the world's largest custodian bank, has made USDC the first stablecoin supported on its Digital Asset Custody platform, giving institutional clients a single environment to store, transfer, mint, and redeem Circle's dollar-pegged token alongside traditional assets.
The integration, announced Monday by Circle on its official X account, extends a relationship between the two firms that began in 2022, when Circle selected BNY as the primary custodian of USDC reserves. BNY oversees $59.4 trillion in assets under custody and administration, per its first-quarter 2026 earnings. USDC holds $73.71 billion in circulation, the second-largest stablecoin by market cap, per DefiLlama.
Under the expanded arrangement, BNY's institutional clients can hold USDC in digital asset custody wallets maintained by the bank, then instruct BNY to have Circle convert U.S. dollars into USDC (mint) or redeem USDC back into dollars (burn). That brings fiat cash management and blockchain-based settlement into one operational framework, removing the handoff between a traditional custodian and a separate stablecoin infrastructure provider.
BNY said it plans to extend the capability to additional stablecoin issuers and broader digital cash workflows over time.
