Bank of New York Mellon (BNY) shares rose 1.41% to $145.58 on Monday after the world’s largest custody bank announced it is adding Circle’s USDC stablecoin to its Digital Asset Custody platform. The move marks the first stablecoin supported on the institutional-grade custody solution, allowing clients to hold, mint, and redeem USDC directly within BNY’s regulated environment.
Through the partnership, BNY’s institutional clients can instruct Circle to mint USDC from U.S. dollars and convert the stablecoin back to fiat, all while staying inside the bank’s operational and compliance framework. The service builds on BNY’s existing role as the primary custodian of USDC reserves and provides a seamless bridge between traditional cash management and blockchain-based payments.
USDC is the second-largest dollar-pegged stablecoin, with a market capitalization above $73 billion, according to figures cited in the announcement. Circle has long pursued a compliance-first strategy, a path that has been reinforced by the 2025 passage of the GENIUS Act in the United States, which created a federal regulatory framework for stablecoin issuers.
The launch deepens BNY’s relationship with Circle beyond reserve custody into client-facing services. Kash Razzaghi, Chief Commercial Officer at Circle, described the agreement as “the next chapter” in enabling connectivity between traditional and on-chain assets. Meanwhile, Heslin Kim of Zenith noted that BNY’s support for institutional stablecoin minting and burning confirms genuine demand, signaling a shift from retrofitting blockchain infrastructure to building it with privacy, governance, and compliance at the core.
BNY oversees approximately $59 trillion in assets, and its stablecoin push underscores Wall Street’s growing embrace of tokenized cash equivalents for settlement, payments, and transfers. Analysts from Standard Chartered and Citigroup have projected strong long-term growth for the stablecoin market, and integrations like this one are expected to significantly expand USDC’s institutional utilization.
