BNY adds USDC custody and minting services for institutional clients

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BNY USDC custody for institutions

Highlights

BNY launched USDC custody and minting services on its Digital Asset Custody platform, allowing institutional clients direct minting and redemption through Circle.
Demand for stablecoin services is rising after the 2025 GENIUS Act, which introduced a federal framework for U.S. dollar-backed stablecoins and clear issuer oversight.
Standard Chartered projects the stablecoin market could grow from about $300 billion to $2 trillion by 2028, while Citigroup expects $4 trillion by 2030; USDC's market capitalization exceeds $73 billion.

USDC rollout on BNY's digital platform

As reported by CoinDesk, BNY said Monday that USDC is becoming the first stablecoin supported on its Digital Asset Custody platform, allowing institutional clients to custody the token and instruct Circle to mint or redeem it against U.S. dollars through the bank.

The move deepens BNY's role in the USDC ecosystem. The bank already acts as the primary custodian for the reserves backing the stablecoin, and the new service means institutions can oversee both cash holdings and digital assets through a single setup.

BNY also said it plans to add support for other stablecoin issuers over time. Carolyn Weinberg, chief product and innovation officer at BNY, said institutions need infrastructure that works across both traditional and blockchain-based financial systems as digital assets become more integrated into markets.

Regulation and market growth drive demand

The announcement comes as banks and asset managers increase their focus on stablecoins after the 2025 passage of the GENIUS Act, a U.S. law that establishes a federal framework for U.S. dollar-backed stablecoins. The legislation is expected to speed institutional adoption by setting rules for reserve assets, disclosures and issuer oversight.

Stablecoins are designed to maintain a fixed value, typically against the U.S. dollar, and are commonly backed by cash and short-term U.S. Treasuries. After starting mainly as trading tools in crypto markets, they are now being used more broadly in payments, cross-border transfers and securities settlement.

Forecasts from major banks point to a larger addressable market ahead. Standard Chartered projects the stablecoin market could grow from about $300 billion currently to $2 trillion by the end of 2028, while Citigroup estimates it could reach $4 trillion by 2030 in its base case; Circle's USDC currently has a market capitalization of more than $73 billion.

Our earlier article on the CFTC’s approval of cryptocurrency perpetual futures described how the regulator’s move is expanding access to high-leverage crypto derivatives in the U.S., with new venues quickly attracting significant trading volume. We also noted that the shift is pressuring established exchange operators and intensifying debate over investor protection, risk controls, and how these volatile products should be supervised as they move onshore.

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