BNY, the world's largest custodian bank, announced on June 29, 2026 that it will enable institutional clients to mint, redeem and custody USDC through its Digital Asset Custody platform, mark
BNY, the world's largest custodian bank, announced on June 29, 2026 that it will enable institutional clients to mint, redeem and custody USDC through its Digital Asset Custody platform, marking the first stablecoin supported on the system.
TLDR Keypoints
Under the expanded arrangement, BNY clients will be able to hold USDC in custody and instruct Circle Internet Group to convert U.S. dollars into USDC or redeem USDC back into dollars, according to the bank's announcement. The service covers storage, transfer, minting and burning of the stablecoin. For related coverage, see XRP Spot ETFs Drew Inflows on June 26 as Bitcoin and Ether ETFs Posted Outflows.
The offering targets institutional clients rather than retail users, positioning BNY as a regulated bridge between traditional finance and stablecoin infrastructure. BNY said it plans to expand support to additional stablecoin issuers and digital cash workflows over time. For related coverage, see Polymarket Hack Losses Rise to $3.1 Million as Refund Pledge Faces Scrutiny.
USDC currently carries an approximately $73.67 billion market capitalization, making it the second-largest stablecoin by supply.
USDC market cap $73.67B CoinGecko market data places USDC near $73.67 billion in market capitalization, underscoring the size of the asset BNY is bringing deeper into institutional custody and mint-redemption workflows.Carolyn Weinberg of BNY said institutions need infrastructure that seamlessly works across traditional and blockchain-based systems, framing the USDC integration as a step toward that goal.
BNY's relationship with Circle is not new. Circle selected BNY as a primary custodian for USDC reserves in March 2022. As of December 31, 2025, approximately 88% of USDC reserves were held in the Circle Reserve Fund, with that fund's assets custodied by BNY.
USDC reserves in Circle Reserve Fund 88% Circle's annual filing says about 88% of USDC reserves sat in the Circle Reserve Fund at year-end 2025, with those fund assets held in BNY custody, adding balance-sheet context to the expanded partnership.The expansion from reserve custody to full mint-and-redemption services means institutional clients can now enter and exit USDC positions through the same bank that already safeguards the bulk of the stablecoin's backing. That consolidation reduces counterparty complexity for asset managers and funds that require regulated custody rails.
The move comes as traditional financial institutions increasingly build stablecoin capabilities. American Express recently posted a VP-level role focused on stablecoin and blockchain partnerships, signaling broader Wall Street interest in the space.
Circle describes USDC as redeemable 1:1 for U.S. dollars and 100% backed by highly liquid cash and cash-equivalent assets. Industry observers have framed BNY's rollout as part of a broader post-GENIUS Act push to build institutional stablecoin infrastructure.
Several open questions remain. BNY has not disclosed which institutional clients will use the service first or projected volumes. The bank indicated it plans to onboard additional stablecoin issuers, but has not named them or provided a timeline beyond the initial USDC launch.
Adoption metrics, including how much USDC flows through BNY's minting and redemption channels, will be a key indicator of institutional demand. The broader digital asset custody landscape continues to evolve as banks and asset managers explore tokenized asset services and direct crypto holdings.
What is confirmed: BNY's Digital Asset Custody platform now supports USDC minting, redemption and safekeeping for institutional clients, backed by a custodial relationship with Circle that dates back four years. What remains to be determined is how quickly institutions adopt the service and whether competing banks follow with similar offerings.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
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