Wall Street's BNY expands stablecoin services for institutions, starting with Circle's USDC

BNY Mellon is expanding its digital asset custody platform to support Circle’s USDC, allowing institutional clients to custody, mint, and redeem the stablecoin through BNY. The move deepens BNY’s role in the USDC ecosystem, where it already acts as reserve custodian, and signals growing institutional demand for regulated stablecoin infrastructure. BNY also said it plans to add support for more stablecoin issuers over time. The announcement is a positive development for Circle and the broader stablecoin industry, as it suggests traditional finance is increasingly integrating stablecoins into payments, settlement, and treasury workflows. The backdrop includes the 2025 GENIUS Act, which created a federal framework for U.S. dollar-backed stablecoins and could accelerate adoption among banks and asset managers.