Wall Street's BNY expands stablecoin services for institutions, starting with Circle's USDC

Finance Wall Street's BNY expands stablecoin services for institutions, starting with Circle's USDC The world's largest custody bank is adding USDC custody and minting services as stablecoins move deeper into traditional finance. By Krisztian Sandor | Edited by Cheyenne Ligon Jun 29, 2026, 2:46 p.m. 2 min read Make preferred on Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Make preferred on BNY Mellon (Getty Images/Cheng Xin) Summary Show BNY will let institutional clients custody, mint and redeem Circle's USDC through its digital asset platform. The bank plans to expand the service to additional stablecoin issuers over time. The move reflects growing demand from traditional financial institutions for regulated stablecoin infrastructure. BNY, the world's largest custody bank overseeing $59 trillion in assets, is deepening its ties with Circle (CRCL) as the Wall Street bank ramps up its stablecoin services. The bank said Monday that USDC will become the first stablecoin supported on its Digital Asset Custody platform. Clients will be able to hold USDC in custody at BNY and instruct Circle to convert U.S. dollars into the stablecoin or redeem USDC back into dollars through the bank. The move expands BNY's role in the USDC ecosystem. The bank already serves as the primary custodian of the reserves backing the stablecoin. The new offering lets institutions manage both their cash and digital assets through a single platform. BNY said it plans to support additional stablecoin issuers over time. The announcement comes as stablecoins gain momentum among banks and asset managers following the 2025 passage of the GENIUS Act, the U.S. law establishing a federal framework for U.S. dollar-backed stablecoins. The legislation is widely expected to accelerate institutional adoption by setting rules for reserve assets, disclosures and issuer oversight. Unlike cryptocurrencies such as bitcoin, stablecoins are designed to maintain a fixed price pegged to a fiat currency, typically to the U.S. dollar and backed with cash and short-term U.S. Treasuries. Originally used primarily by crypto traders on exchanges, they are increasingly finding broader uses in payments, cross-border transfers and securities settlement. Institutions see significant room for growth. Standard Chartered projected the stablecoin market could expand from roughly $300 billion today to $2 trillion by the end of 2028, while Citigroup estimated it could reach $4 trillion by 2030 in its base case. Circle's USDC is the second-largest stablecoin with a market capitalization of over $73 billion. "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 and innovation officer at BNY. Stablecoins Circle Latest Crypto News 1 Strategy opens the door to selling bitcoin under new capital plan. Here's what it means 36 minutes ago 2 Ukraine transfers $8.3 million in seized crypto amid potential plans for strategic reserve 44 minutes ago 3 BlackRock pushes deeper into DeFi with Ethena integration, sending ENA up 8% 45 minutes ago 4 Kalshi and Polymarket could become M&A targets as prediction markets consolidate: Bernstein 1 hour ago 5 Tom Lee blames crypto weakness on quarter-end 'window dressing' as Bitmine adds another $43 million of ETH 1 hour ago 6 JPMorgan sees limited institutional demand for perpetual futures 1 hour ago 7 Saylor's Strategy initiates buybacks and bitcoin monetization program, lifts STRC dividend 2 hours ago 8 Tether's USDT jumps to 8.5% premium in India after crypto payment crackdown 2 hours ago 9 Vitalik Buterin says crypto’s most powerful idea isn't nearly ready for use 2 hours ago 10 Dollar, U.S. Treasury yield market positions may carry glimmer of hope for bitcoin 3 hours ago Latest Research The Evolution of the Crypto CEX Landscape: A Case Study on Binance The Evolution of the Crypto CEX Landscape: A Case Study on Binance Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services. By CoinDesk Research 4 hours ago Commissioned by Binance Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services. Why it matters : Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services. View Full Report More From Finance Ukraine transfers $8.3 million in seized crypto amid potential plans for strategic reserve BlackRock pushes deeper into DeFi with Ethena integration, sending ENA up 8% Kalshi and Polymarket could become M&A targets as prediction markets consolidate: Bernstein