Circle deepens its cooperation with BNY Mellon, as its stablecoin USDC becomes the first to be integrated into the bank’s digital asset custody platform for institutions. Clients can now store, transfer, mint and burn USDC directly within BNY’s digital asset wallets, alongside traditional assets. This allows institutional clients to tell BNY to convert US dollars to USDC or redeem USDC back to dollars without the need for an external exchange.
Circle called the move a deepening of its collaboration with one of the world’s largest global custodians. USDC already runs on multiple public blockchains, and it now plugs into BNY’s existing infrastructure for safekeeping and settlement.
This setup lets institutions manage fiat balances and tokenized dollars together. They do so under a single custody framework instead of juggling separate providers.
BNY Extends Role as USDC Reserve Custodian
The announcement follows a collaboration that began in 2022, when Circle named BNY Mellon as one of its key USDC reserve custodians. At the time, Circle CEO Jeremy Allaire said USDC was “100% backed by cash and short-term U.S. Treasuries,” and BNY would hold those assets. Now, BNY both safeguards USDC reserves and lets clients use the stablecoin on its digital asset platform.
In its latest press release, BNY said the expanded partnership “adds to institutional‑grade stablecoin enablement services” for global clients. The bank framed USDC support as part of a broader plan to let customers move value directly between traditional accounts and blockchain-based tokens. Since BNY already custodies trillions in conventional securities, tying that system to USDC gives large investors a familiar setup.
Circle’s Chief Business Officer Kash Razzaghi called the deal “a continuation of the long‑term relationship between the two parties, connecting on‑chain assets with traditional assets for BNY clients.”
He said the integration covers the “complete lifecycle of institutional stablecoin business,” from minting to redemption. That scope helps asset managers, corporates, and banks test tokenized cash while keeping existing risk and compliance controls.
BNY said it plans to “expand support to additional stablecoin issuers and digital cash workflows over time.” The bank has already built a multi-asset digital custody platform to hold and transfer various cryptocurrencies for asset-management clients. With USDC as the first supported stablecoin, later integrations could add more regulated tokens under one roof and give institutions more on‑chain cash choices.
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