BNY Mellon Taps Circle’s USDC for Institutional Clients

BNY Mellon Expands Stablecoin Services for Institutional Clients

The Bank of New York Mellon (BNY), the United States’ oldest bank, has deepened its collaboration with Circle to offer new stablecoin services tailored for institutional clients.

Under the agreement, Circle’s USD Coin (USDC) will be the inaugural stablecoin available on BNY’s Digital Asset Custody platform. This integration will empower BNY clients to manage USDC, including storage, transfers, minting, and burning, through the bank’s established custody services.

The move significantly expands BNY’s role as the primary custodian for USDC reserves, according to an official blog post. Institutional clients utilizing BNY’s digital asset custody platform can now hold USDC within their custody wallets and leverage the bank to facilitate the conversion of U.S. dollars into USDC via Circle.

Clients will also have the capability to redeem USDC for U.S. dollars through the burning mechanism. Circle stated that these services are designed to encompass the full spectrum of institutional stablecoin operations, bridging traditional cash services with digital asset custody within a unified framework. BNY highlighted that these stablecoin functionalities are integral to its comprehensive Digital Assets platform, which aims to assist institutional clients in navigating the evolving intersection of traditional finance and digital assets.

By integrating custody and cash management services, BNY intends to provide access to blockchain-based networks while upholding the stringent controls, governance, and operational resilience demanded by institutional markets. The bank also indicated plans to extend support to other stablecoin issuers and additional digital cash workflows in the future.

Carolyn Weinberg, BNY Mellon’s Chief Product and Innovation Officer, commented, “As digital assets become increasingly integrated into financial markets, institutions need infrastructure that seamlessly works across traditional and blockchain-based systems. With the addition of our enhanced stablecoin enablement capabilities, we’re expanding the ways clients can move value with the operational scale, trust, and resiliency they expect from BNY.”

BNY Mellon and Circle initially formed a partnership in March 2022, when the bank was appointed as a primary custodian for the reserves backing the stablecoin. Since then, BNY has consistently bolstered its presence in the digital asset sector over the past few years.

This year, the financial institution expanded its digital asset custody business by partnering with Finstreet and ADI Foundation to develop regulated crypto infrastructure within Abu Dhabi’s ADGM financial hub.