Key Takeaways
BNY, the world's largest custody bank with $59 trillion in assets, said on June 29, 2026, that Circle's USDC will be the first stablecoin on its Digital Asset Custody platform.
Institutional clients will be able to hold USDC in custody and instruct Circle to convert dollars into the stablecoin or redeem it back, all through the bank.
The move follows the 2025 GENIUS Act and signals stablecoins moving from crypto trading into mainstream banking infrastructure.
BNY, the world's largest custody bank, said on Monday that it will let institutional clients hold, mint, and redeem Circle's USDC, making it the first stablecoin supported on the bank's Digital Asset Custody platform. CoinDesk reported the bank, which oversees about $59 trillion in assets, already serves as the primary custodian of the reserves backing USDC.
The new service lets institutions manage cash and digital assets in one place. A client can hold USDC at BNY and instruct Circle to turn dollars into the token or redeem the token back into dollars, with the bank sitting in the middle. BNY said it plans to support more stablecoin issuers over time.
Stablecoins are built to hold a fixed value, usually one dollar, backed by cash and short-term Treasuries. They started as a tool for crypto traders and are moving into payments, cross-border transfers, and settlement. USDC is the second-largest stablecoin, with a market value above $73 billion.
Carolyn Weinberg, BNY's chief product and innovation officer, framed the demand plainly.
"institutions need infrastructure that seamlessly works across traditional and blockchain-based systems"
Carolyn Weinberg, chief product and innovation officer, BNY
The timing tracks the 2025 GENIUS Act, the federal law that set reserve, disclosure, and oversight rules for dollar stablecoins. Standard Chartered projects the market could grow from about $300 billion today to $2 trillion by the end of 2028.
BNY joins a run of institutions wiring stablecoins and tokenized money into the banking core, from Anchorage's tokenized-deposit rails to issuers preparing for bank-style oversight under the GENIUS Act. The most notable part of this is who is doing it, the biggest custodian in the world. Worth watching which issuer is next.
People Also Ask
What did BNY announce about USDC?
BNY said USDC will be the first stablecoin on its Digital Asset Custody platform, letting institutions hold, mint, and redeem the token through the bank.
How big is BNY in custody?
BNY is the world's largest custody bank, overseeing about $59 trillion in assets, and it already custodies the reserves backing Circle's USDC.
What is USDC and how large is it?
USDC is a dollar-pegged stablecoin issued by Circle, backed by cash and short-term Treasuries. It is the second-largest stablecoin, with a market value above $73 billion.
How does the GENIUS Act affect stablecoins?
The 2025 GENIUS Act created a federal framework with reserve, disclosure, and issuer-oversight rules, which is expected to speed institutional adoption of stablecoins.