BNY, the world’s largest custody bank with $59 trillion in assets, has expanded its digital asset services by adding Circle’s USDC to its Digital Asset Custody platform. Now, institutional clients can hold USDC with BNY, convert U.S. dollars into the stablecoin, and redeem USDC back into dollars through the bank. BNY also plans to support more regulated stablecoins in the future.
The latest integration strengthens BNY’s partnership with Circle. The bank already serves as the primary custodian for the reserves backing USDC, and the expanded service enables institutions to manage both traditional cash and digital assets through a single platform.
This news comes as stablecoins are becoming more accepted by banks, asset managers, and payment companies after the GENIUS Act created a federal framework for U.S. dollar-backed stablecoins.
Stablecoins, unlike cryptocurrencies like Bitcoin, are meant to keep a fixed value, usually backed by cash and short-term U.S. Treasury securities. They started out popular with crypto traders, but now they are also used for cross-border payments, settling securities, and treasury management.
Experts think the stablecoin market could grow quickly in the next few years. Standard Chartered estimates it could go from about $300 billion now to $2 trillion by 2028, and Citigroup thinks it could reach $4 trillion by 2030.
USDC now has a market cap of over $73 billion, making it the world’s second-largest stablecoin. BNY says its expanded custody service shows that more institutions want infrastructure that links traditional finance with blockchain assets.
We’re expanding our relationship with @BNYglobal to give their clients connectivity between onchain and traditional assets.@USDC will be the first stablecoin on BNY’s Digital Asset Custody platform, enabling clients to store, transfer, mint and burn USDC.…
— Circle (@circle) June 29, 2026
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