BNY has expanded its relationship with Circle to add USDC as the first stablecoin on its Digital Asset Custody platform.
Under the arrangement, Circle's USDC becomes the first stablecoin available on BNY's Digital Asset Custody platform, allowing BNY clients to store, transfer, mint, and burn the token directly through their existing custody relationship.
The announcement builds on BNY's existing position as a custodian of USDC reserves. Clients holding digital asset custody wallets at BNY can now instruct Circle to convert US dollars into USDC, a process referred to as minting, and to redeem USDC back into US dollars, known as burning. Through the process of linking these instructions to BNY's custody infrastructure, the two companies aim to connect fiat and digital asset workflows within a single institutional framework, covering the full lifecycle of stablecoin activity from issuance to redemption. BNY has stated that it plans to extend support to additional stablecoin issuers and digital cash workflows over time, though no specific timeline has been disclosed.
Positioning within BNY's digital assets platform
The stablecoin enablement capabilities form part of BNY's broader Digital Assets platform, which the company positions as infrastructure for institutional clients navigating the convergence of traditional and blockchain-based finance. In addition, by combining custody and cash management functions within one operating model, BNY said it intends to provide the controls, resiliency, and governance expected of institutional market infrastructure as clients engage with blockchain-based networks.
Carolyn Weinberg, Chief Product and Innovation Officer at BNY, said that as digital assets become more integrated into financial markets, institutions require infrastructure that operates across both traditional and blockchain-based systems. She added that the new stablecoin enablement capabilities are intended to expand how clients move value while maintaining the operational scale and reliability associated with BNY.
Furthermore, Kash Razzaghi, Chief Commercial Officer at Circle, said that USDC's inclusion as the first stablecoin on BNY's new offering reflects the regulatory approach Circle has applied to the token since its launch. He described the development as a continuation of the companies' existing relationship, providing BNY clients with connectivity between onchain and traditional assets within infrastructure they already use.
The expansion comes as institutional interest in stablecoin infrastructure continues to grow, with custodians increasingly building direct links between fiat settlement and digital asset rails. For BNY, the move extends its existing reserve custody role into a broader operational service covering issuance and redemption, while for Circle, it reinforces USDC's presence within established institutional custody networks.
