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- BNY USDC services add minting, redemption, custody, and transfers for institutions.
- Clients can convert dollars into USDC, redeem it, and move the token inside BNY’s platform.
- BNY says future support may include more stablecoins and digital cash workflows.
BNY has added USDC services to its Digital Asset Custody platform, giving institutional clients direct access to Circle’s stablecoin through the bank. The update covers minting, redemption, custody, and transfers. It makes USDC the platform’s first supported stablecoin for clients.
According to a report, the BNY USDC expansion allows clients to convert U.S. dollars into USDC inside BNY’s platform. Clients can also redeem USDC back into dollars through the same system. BNY said users may hold and transfer the token through its digital asset custody service.
The BNY USDC launch extends BNY’s existing relationship with Circle. BNY already serves as the primary custodian for assets backing USDC. The new service moves the bank from reserve custody into direct stablecoin support for institutional clients.
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BNY USDC Service Opens Bank-Based Stablecoin Access
BNY said it plans to add more stablecoins and digital cash workflows over time. The bank did not identify the next assets it may support. It also did not provide a timeline for the wider rollout.
The BNY USDC service gives large institutions a bank-based route into stablecoin activity. BNY said it oversees $59.3 trillion in assets under custody and administration. The bank also said it serves more than 90% of Fortune 100 companies.
According to DefiLlama data, USDC is the second-largest stablecoin by market value. The data shows more than $73.8 billion in USDC circulation. It also places the total stablecoin market near $313 billion, with Tether’s USDT still the largest token.
The announcement follows other digital asset custody work by BNY. In May, the bank partnered with Abu Dhabi-based Finstreet and the ADI Foundation. That project focused on Bitcoin and Ether custody, with plans for stablecoins and tokenized real-world assets.
The BNY USDC rollout places issuance, redemption, and custody closer to systems already used by institutional clients. Circle remains responsible for USDC issuance. BNY provides platform tools for holding, moving, and redeeming the token through its custody service.
Major Financial Firms Expand Stablecoin Infrastructure
Other financial firms are also building services around stablecoins. In May, JPMorgan filed to launch a tokenized money market fund for stablecoin issuers. The Ethereum-based fund would invest in U.S. Treasury bills and overnight repurchase agreements used to support payment stablecoins.
State Street launched a government money market fund for stablecoin issuers this month. The fund invests in U.S. government securities and repurchase agreements. State Street Bank and Anchorage Digital were listed among its first investors.
Fidelity Investments moved into the stablecoin market in January. The firm launched its U.S. dollar-backed stablecoin FIDD after receiving conditional approval to operate a national trust bank. That added another asset manager to regulated digital cash services.
The BNY USDC move shows how financial firms are building around stablecoin custody and settlement. Banks and asset managers are focusing on reserves, custody, and payment rails. Institutional demand for regulated digital cash access is shaping those services.
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