CoinDesk
BNY, the world's largest custody bank overseeing $59 trillion in assets, said Monday it will let institutional clients custody, mint and redeem Circle's USDC through its Digital Asset Custody platform. The move makes USDC the first stablecoin supported on the system, and gives institutions a single regulated counterparty to convert dollars into the token or redeem USDC back into cash.
BNY already serves as the primary custodian of the reserves backing USDC, so the launch extends a relationship rather than starting one. Clients can now manage cash and digital assets on the same platform, removing one of the operational frictions that has kept larger allocators on the sidelines.
Why it matters
The launch lands in the wake of the 2025 GENIUS Act, which established a federal framework for U.S. dollar-backed stablecoins covering reserve assets, disclosures and issuer oversight. BNY is the first major U.S. custodian to productise mint and redemption alongside custody, effectively turning itself into stablecoin infrastructure rather than just a vault. The bank has signalled it will add more issuers over time, suggesting a multi-rail platform play rather than a Circle-exclusive product.
Market impact
The institutional bid for stablecoins is now measured in trillions. Standard Chartered projects the market could expand from roughly $300 billion today to $2 trillion by the end of 2028, while Citigroup's base case puts it at $4 trillion by 2030. USDC, the second-largest stablecoin at more than $73 billion in market cap, stands to absorb a meaningful share of that flow as the only token with a top-tier U.S. bank sitting directly on the mint and redemption rails.
Frequently asked questions
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What did BNY actually launch?
BNY said Monday it will let institutional clients custody, mint and redeem Circle's USDC through its Digital Asset Custody platform, making USDC the first stablecoin supported on the system.
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Why does BNY's move matter for stablecoin adoption?
BNY is the first major U.S. custodian to productise mint and redemption alongside custody, giving institutions a single regulated counterparty for stablecoin operations. That removes a key operational friction for larger allocators.
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How does this connect to the GENIUS Act?
The launch follows the 2025 GENIUS Act, which created a federal framework for U.S. dollar-backed stablecoins covering reserve assets, disclosures and issuer oversight. BNY's product lands into that clearer regulatory lane.
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How big could the stablecoin market get?
Standard Chartered projects growth from roughly $300 billion today to $2 trillion by the end of 2028, while Citigroup's base case puts the market at $4 trillion by 2030.
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What is USDC's position in the market?
USDC is the second-largest stablecoin with a market capitalization of more than $73 billion, and BNY already serves as the primary custodian of its reserves.
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