BNY Now Mints USDC for the Suits Who Already Guard the $73.8B Behind It

BNY has expanded its Digital Asset Custody platform to allow institutional clients to store, transfer, mint and redeem Circle's USD Coin, making USDC the first stablecoin supported on the service. The new capabilities let BNY clients convert US dollars into USDC and redeem the stablecoin back into dollars directly through the bank, while also storing and transferring USDC on the custody platform. BNY said it plans to extend the service to additional stablecoins and digital cash workflows over time.

The move builds on BNY's existing role as primary custodian of the assets backing USDC, extending its relationship with Circle beyond safeguarding reserves to include client-facing stablecoin services. BNY oversees $59.3 trillion in assets under custody and administration and serves more than 90% of Fortune 100 companies. USDC is the world's second-largest stablecoin by market capitalization, with more than $73.8 billion in circulation, according to DefiLlama data. In May, BNY partnered with Abu Dhabi-based Finstreet and the ADI Foundation to develop institutional custody services for $BTC and $ETH, with plans to later support stablecoins and tokenized real-world assets.

BNY's announcement is the latest in a series of stablecoin-focused products launched by major financial institutions in recent months, as traditional banks and asset managers expand services supporting reserve management, custody and blockchain-based payments. In May, JPMorgan filed to launch a tokenized money market fund that would allow stablecoin issuers to hold reserve assets in a regulated investment vehicle while earning interest. The Ethereum-based fund is designed to invest in US Treasury bills and overnight repurchase agreements that back payment stablecoins.

Earlier this month, State Street launched a government money market fund for stablecoin issuers, offering a vehicle to hold reserve assets in compliance with the GENIUS Act. The fund invests in US government securities and repurchase agreements and counts State Street Bank and Anchorage Digital among its initial investors. In July 2025, Bank of America said it was exploring stablecoins to modernize its payments infrastructure, while in January, Fidelity Investments launched a US dollar-backed stablecoin, FIDD, after receiving conditional approval to operate a national trust bank.

The stablecoin market is valued at approximately $313 billion, according to DefiLlama, with Tether's USDT accounting for about 60% of the market.