Circle and BNY add USDC custody, minting and redemption services
BNY is positioning itself as a central institutional hub for USDC by combining custody with dollar conversion, while signaling plans to support additional stablecoin issuers over time.
Circle and BNY said on June 29 that USDC has become the first supported stablecoin on BNY’s digital asset custody platform, expanding the bank’s role in institutional stablecoin infrastructure. BNY clients can hold, transfer, mint and redeem USDC through the platform, using a single access point to convert U.S. dollars into USDC and redeem the token back into fiat without running separate on-chain and off-chain cash systems. The move builds on BNY’s existing role as primary custodian of USDC reserve assets and follows earlier collaboration on tokenized deposits. BNY said it plans to add support for other stablecoin issuers over time, while Circle continues a broader institutional push that has included Japan-focused settlement plans with Nomura. USDC’s market capitalization stands at about $73.7 billion, second among stablecoins behind Tether’s USDT at $186 billion.
- stablecoin: A token designed to maintain a steady value, typically by being linked to a fiat currency such as the U.S. dollar.
- tokenized deposits: Digital representations of bank deposits used on blockchain-based systems for payments, collateral or settlement workflows.
- mint and redeem: The process of creating new tokens in exchange for cash and converting existing tokens back into fiat money.