Catenaa, Friday, July 03, 2026- The Bank of New York Mellon (BNY) has expanded its partnership with Circle Internet Group to offer institutional clients full-lifecycle services for USDC, marking another step in the integration of traditional banking with digital assets.
Under the expanded arrangement, USDC becomes the first stablecoin supported on BNY’s Digital Asset Custody platform, allowing clients to custody, transfer, mint and redeem the dollar-pegged stablecoin directly through the bank.
The initiative strengthens BNY’s role in institutional digital asset infrastructure while expanding Circle’s reach among regulated financial institutions.
Institutional customers will now be able to hold USDC in digital custody wallets managed by BNY and instruct the bank to convert US dollars into newly issued USDC.
Clients can also redeem, or burn, USDC back into US dollars through the same platform, creating a streamlined process between traditional fiat currency and blockchain-based assets.
The service initially supports USDC issued on the Ethereum and Solana blockchains.
BNY already serves as the primary custodian of reserves backing USDC.
The expanded partnership extends that relationship by enabling clients to access stablecoin issuance, custody and redemption through a single banking platform.
Circle said the move reflects growing institutional demand for regulated digital asset infrastructure that operates alongside traditional financial services.
As the world’s largest custodian bank, BNY said the platform is designed to give institutional investors secure access to digital assets within existing banking relationships.
The bank also plans to support additional stablecoin issuers over time, though USDC is the first digital asset available through the service.
The expansion reflects increasing interest among large financial institutions in tokenized assets and blockchain-based settlement.
BNY has steadily expanded its digital asset offerings over recent years.
Earlier this year, the bank launched a tokenized deposit service for a group of institutional clients, including ICE and Citadel Securities.
The bank has also become one of the leading providers of regulated digital asset custody, supporting many US spot Bitcoin and Ethereum exchange-traded funds.
The partnership highlights the growing role of stablecoins as financial infrastructure rather than purely crypto trading instruments.
USDC is increasingly being used for payments, settlements, treasury management and tokenized financial products, with regulated banks now integrating stablecoin services into traditional custody platforms.
Industry observers view such partnerships as another step toward broader institutional adoption of blockchain-based finance.
USDC is the world’s second-largest stablecoin by market capitalization and is issued by Circle Internet Group. The token is fully backed by US dollar-denominated reserves and is widely used across digital asset markets for trading, payments and settlement. As regulatory frameworks for stablecoins mature globally, major financial institutions are increasingly incorporating tokenized dollars into their existing custody, payments and treasury operations, accelerating the convergence of traditional finance and blockchain technology.
