BNY expands partnership with Circle and begins offering support for USDC
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Bank of New York Mellon (BNY), considered the oldest bank in the United States, expanded its partnership with Circle to offer new USDC-related services aimed at the institutional public. The initiative marks another step in the integration between the traditional financial system and digital assets.
Under the new agreement, USDC becomes the first digital currency of this type compatible with BNY's Digital Asset Custody platform. The new feature will allow institutional clients to store, transfer, mint, and burn USDC directly through the bank's custody infrastructure.
The expansion also reinforces BNY's role as the main custodian of the reserves backing USDC. Clients using the platform will be able to keep the digital currency in their custodied wallets and request from Circle the conversion of U.S. dollars into USDC using the financial institution's services.
The process will also work in the opposite direction. Institutional users will be able to redeem their USDC for U.S. dollars through the burning of tokens, using the same operational structure.
According to Circle, the proposal is to offer support for the entire operational cycle involving USDC, bringing together traditional cash management services with digital asset custody in a single environment. The company believes that this integration makes it easier for large financial institutions to use the digital currency.
BNY stated that the new features are part of the evolution of its integrated Digital Assets platform. The goal is to meet the growing demand for solutions capable of connecting traditional financial operations with blockchain-based networks, while maintaining high standards of governance, internal controls, and operational resilience.
In addition to support for USDC, the bank said it intends to expand its infrastructure in the future to other digital currency issuers and incorporate new workflows aimed at digital money.
Carolyn Weinberg, BNY's Chief Product and Innovation Officer, commented:
“As digital assets become increasingly integrated into financial markets, institutions need infrastructure that works seamlessly across traditional and blockchain-based systems. With the addition of our enhanced stablecoin enablement capabilities, we are expanding the ways clients can move value with the operational scale, trust, and resilience they expect from BNY.”
The partnership between BNY and Circle began in March 2022, when the bank was chosen to custody most of the reserves backing USDC. Since then, the institution has been expanding its operations in the digital assets segment through investments in infrastructure aimed at the institutional market.
In 2026, the bank also expanded its international presence by signing agreements with Finstreet and the ADI Foundation to develop a regulated digital asset infrastructure in the ADGM financial center, in Abu Dhabi. The strategy demonstrates BNY's interest in keeping pace with the growth of institutional adoption of blockchain-based technologies and expanding its offering of services aimed at the global financial market.