Bny expands Circle tie-up with USDC custody services
Wed, 1st Jul 2026 (Today)
BNY has expanded its relationship with Circle to add USDC services for institutional clients, making USDC the first stablecoin available on BNY's Digital Asset Custody platform.
Clients will be able to store, transfer, mint and burn USDC through the platform. The arrangement also extends BNY's role as primary custodian of USDC reserves.
Under the new set-up, institutional clients can hold USDC in digital asset custody wallets at BNY. They can also instruct Circle through BNY to convert US dollars into USDC or redeem USDC back into US dollars.
That gives clients a single route for both digital asset custody and fiat-linked stablecoin activity. The service is intended to cover the full cycle of institutional use of the token, from issuance to redemption.
Broader push
The development is part of BNY's broader digital assets business, as the bank builds services for institutions seeking access to blockchain-based markets. Over time, it plans to support additional stablecoin issuers and other digital cash workflows.
Stablecoins are digital tokens designed to maintain a fixed value against a reference asset, most commonly the US dollar. Their use has grown in trading, settlement and cross-border transfers, drawing closer scrutiny from large financial institutions and regulators as links between conventional finance and blockchain networks deepen.
BNY is one of the largest custody and asset servicing groups in global finance. As of the end of March, it oversaw USD $59.4 trillion in assets under custody and/or administration and USD $2.1 trillion in assets under management.
Circle issues USDC, one of the largest dollar-backed stablecoins in circulation. By placing the token on BNY's custody platform, the two groups aim to give institutional investors a more direct operational link between tokenised dollars and the banking system.
Carolyn Weinberg, Chief Product & Innovation Officer at BNY, said the move reflects a broader shift in market structure.
"As digital assets become increasingly integrated into financial markets, institutions need infrastructure that seamlessly works across traditional and blockchain-based systems," said Carolyn Weinberg, Chief Product & Innovation Officer, BNY.
"With the addition of our enhanced stablecoin enablement capabilities, we're expanding the ways clients can move value with the operational scale, trust and resiliency they expect from BNY," Weinberg said.
Circle described the announcement as an extension of its existing relationship with BNY, which already includes the bank's role in safeguarding reserves that support USDC.
"BNY has always been where institutional finance moves first, and making USDC the first stablecoin included in their new offering reflects the regulatory rigor Circle has built into USDC from day one," said Kash Razzaghi, Chief Commercial Officer, Circle.
"This is the next chapter in a longstanding relationship that now gives BNY clients connectivity between on-chain and traditional assets, within the infrastructure they already trust," Razzaghi said.
The move highlights how major financial institutions are adapting existing custody and cash-management models to digital instruments on blockchain networks. For banks and asset servicers, the appeal lies in offering clients a controlled way to handle tokenised cash without moving outside established institutional processes.
The new service combines custody, minting, and redemption functions into a single operating model for clients using USDC.