BNY Mellon’s Digital Asset Custody platform will begin with Circle’s USDC, enabling institutional clients to custody, transfer, mint, and redeem USDC within a single banking infrastructure.

The arrangement aims to extend services to additional stablecoins and digital cash workflows over time.

Institutional clients will be able to hold USDC in BNY custody wallets and mint USDC from USD, then burn USDC back to USD, integrating fiat custody with blockchain settlement.

Industry data show the stablecoin market valued around $313 billion, with USDT accounting for about 60% of the market.

Circle’s stock ticker is CRCL and USDC is positioned among dollar-denominated stablecoins, with pricing for the new services not disclosed.

Regulatory and operational readiness underpin the choice of USDC for institutional rails, with the partnership aiming to provide resilience and governance suitable for institutions.

USDC is highlighted as settlement infrastructure for both institutional and on-chain markets, framing stablecoins as a payment and settlement rail in traditional finance.

The move comes as GENIUS Act progress and regulatory clarity push financial institutions to build stablecoin infrastructure rather than wait, with Circle and BNY aiming to capitalize on the evolving environment.

The development follows the GENIUS Act’s framework, expected to accelerate institutional adoption of dollar-backed stablecoins.

Carolyn Weinberg, BNY’s Chief Product & Innovation Officer, emphasizes the need for cross-system infrastructure bridging traditional and blockchain financial systems.

Weinberg leads the integration effort, underscoring governance and interoperability across traditional finance and blockchain networks.

Circle notes the integration reflects its regulatory rigor in USDC and strengthens the on-ramp between on-chain and traditional financial infrastructure within a trusted custody framework.