Bank of New York Mellon joins hands with Circle to expand USDC services, increasing the number of ba

BNY integrates USDC into custody platform to expand digital asset services

Bank of New York Mellon (BNY) is expanding the scope of its digital asset services by integrating new USDC capabilities into its custody platform. Institutional customers will be able to deposit, mink, redeem and transfer the stablecoin directly through the bank. The move marks another major financial institution\'s commitment to building infrastructure around regulated digital dollars as stablecoins gain wider recognition in traditional finance.

The bank announced on Monday that the USDC issued by Circle will become the first stablecoin to receive support on its digital asset custody platform. Institutional customers will be able to exchange U.S. dollars for USDC and redeem tokens for cash, while holding fiat currency and digital assets within the same custody relationship.

This expansion builds on BNY\'s existing role as custodian of USDC reserve assets, but extends its participation from purely reserve asset custody to supporting the operational process of institutional stablecoin transactions. This reflects broader innovation in the digital asset space, including progress related to the next generation stablecoin infrastructure.

Institutional applications continue to expand

These new services are designed for institutional investors, asset management companies, corporations and financial institutions that require regulated custody and settlement services for digital assets.

Under the expanded service, customers will be able to: hold USDC custody through BNY; mint new USDC by exchanging U.S. dollars; redeem USDC as legal tender; transfer USDC within a supported blockchain network; and manage traditional and digital assets through a single banking platform.

Instead of relying on independent banking, custody and encryption service providers, organizations can accomplish these activities through an integrated workflow, reducing operational complexity.

The statement that stablecoins have penetrated into mainstream finance

reflects a broader shift in financial markets: stablecoins are increasingly moving beyond cryptocurrency trading and into areas such as payments, treasury management and securities clearing.

Unlike cryptocurrencies such as Bitcoin, stablecoins are backed by cash or short-term government securities and are designed to maintain fixed value. Its ability to settle transactions around the clock makes it increasingly attractive to institutions seeking to accelerate the flow of funds between global markets.

Industry forecasts show that the market will continue to expand. Standard Chartered Bank predicts that the stablecoin market could reach about US$2 trillion by 2028; while Citibank estimates that under its basic scenario, the market size could grow to as much as US$4 trillion by 2030.

Competition among traditional financial institutions has also intensified in the past year. As institutional demand grows, banks are expanding digital asset custody, tokenized deposits and blockchain settlement services. Recent developments suggest that major banks around the world are accelerating their investment in regulated digital asset infrastructure and institutional blockchain services.

For BNY, this latest release represents another step in integrating blockchain assets into its existing custody business, rather than creating a separate crypto business segment. This strategy reflects a general trend on Wall Street: mature financial institutions are positioning their roles to support the parallel development of tokenized cash with traditional banking services.

The partnership also provides direct access to the USDC through one of the world\'s largest custodian banks, thereby consolidating Circle\'s position in institutional finance. As regulated stablecoins are increasingly integrated into banking infrastructure, financial institutions are placing greater emphasis on services that connect traditional cash management with blockchain settlements, highlighting the company\'s broader presence in the digital asset market and the evolving financial system. Layout.