BNY Mellon Adds USDC Custody and Minting Services for Institutional Clients
BNY Mellon, the world's largest custody bank with $59 trillion in assets under custody, announced on Monday that it will add support for Circle's USDC stablecoin on its Digital Asset Custody platform. Institutional clients can now hold USDC in custody at BNY and instruct Circle to mint or redeem USDC for U.S. dollars through the bank. This move expands BNY's role in the USDC ecosystem, as it already serves as the primary custodian of the reserves backing the stablecoin. The bank plans to support additional stablecoin issuers over time. The announcement follows the 2025 passage of the GENIUS Act, a U.S. law establishing a federal framework for dollar-backed stablecoins, which is expected to accelerate institutional adoption. Stablecoins, such as USDC, are designed to maintain a fixed price pegged to the U.S. dollar and backed by cash and Treasuries. They are increasingly used for payments, cross-border transfers, and securities settlement. Industry projections suggest the stablecoin market could grow from $300 billion today to $2-4 trillion by 2028-2030. BNY's head of product, Carolyn Weinberg, emphasized the need for infrastructure that bridges traditional and blockchain-based systems.
Key facts
- BNY Mellon to offer USDC custody, minting and redemption services for institutional clients.
- Bank already serves as primary custodian for USDC reserve assets.
- Move follows U.S. GENIUS Act establishing a federal stablecoin framework in 2025.
- Stablecoin market projected to reach $2-4 trillion by 2028-2030.
- BNY plans to support additional stablecoin issuers over time.