BNY Expands Circle Partnership, Adds USDC Services for Institutions

BNY, the largest custodian bank in the US, is expanding its partnership with stablecoin issuer Circle to broaden USDC services for institutional investors.

Kadena reported on July 3 that BNY will add USDC support to its digital asset custody platform under the expanded partnership with Circle. USDC is the first stablecoin supported on BNY’s digital asset custody platform.

Institutional clients will be able to store and transfer USDC through BNY’s platform. They will also be able to mint new USDC with US dollars, or burn USDC and redeem it for dollars. The service will initially support USDC on Ethereum and Solana.

BNY already serves as a key custodian for USDC reserve assets. The expanded tie-up will let institutional clients manage minting, custody and redemption for USDC on a single banking platform.

Circle said institutional demand is rising for regulated digital-asset infrastructure that operates alongside traditional financial services. It added that the expanded partnership should increase stablecoin utility for institutional investors.

BNY said it designed the platform so institutional investors can access digital assets safely within existing banking relationships. The bank also plans to extend support beyond USDC to other stablecoins.

BNY has been steadily expanding its digital-asset business. Earlier this year, it launched a tokenized deposit service for clients including Intercontinental Exchange and Citadel Securities. It also provides custody services for US spot Bitcoin and Ether ETFs.

Kadena said the partnership shows stablecoins are becoming part of financial infrastructure beyond their role as a virtual-asset trading tool, with uses in payments, treasury management and tokenized financial products.