Wall Street's BNY expands stablecoin services for institutions, starting with Circle's USDC
CoinDesk 2026-06-29 14:46:33
Context: BNY Mellon, the world's largest custody bank, is expanding its stablecoin services for institutions, starting with Circle's USDC, as stablecoins move deeper into traditional finance. The bank will allow institutional clients to custody, mint, and redeem USDC through its digital asset platform, reflecting growing demand from traditional financial institutions for regulated stablecoin infrastructure. This move deepens BNY's ties with Circle and follows the 2025 passage of the GENIUS Act, which established a federal framework for U.S. dollar-backed stablecoins.
Key Facts
- BNY Mellon will let institutional clients custody, mint, and redeem Circle's USDC through its digital asset platform, with plans to expand the service to additional stablecoin issuers over time.
- The bank already serves as the primary custodian of the reserves backing USDC, and the new offering lets institutions manage both their cash and digital assets through a single platform.
- USDC is the second-largest stablecoin with a market capitalization of over $73 billion, and institutions see significant room for growth, with projections suggesting the stablecoin market could expand to $2 trillion by 2028 or $4 trillion by 2030.
- The GENIUS Act, passed in 2025, established a federal framework for U.S. dollar-backed stablecoins, setting rules for reserve assets, disclosures, and issuer oversight, and is widely expected to accelerate institutional adoption.
- BNY's move reflects growing demand from traditional financial institutions for regulated stablecoin infrastructure, with Carolyn Weinberg, chief product and innovation officer at BNY, stating that institutions need infrastructure that seamlessly works across traditional and blockchain-based systems.