BNY has expanded its Digital Asset Custody platform to enable institutional customers to store, transfer, mint and exchange Circle’s USD Coin, making it the first stablecoin supported on the platform.
The fresh capabilities allow BNY customers to convert US dollars to USDC and exchange stablecoins back to dollars directly through the bank, while also storing and transferring USDC on the depository platform. BNY said it plans to expand the service to include additional stablecoins and digital cash flows over time.
The expansion builds on BNY’s existing role as the primary custodian of USDC collateral assets, expanding its relationship with Circle beyond reserve asset collateral to include customer-facing stablecoin services.
According to BNY, the custodian bank oversees $59.3 trillion in assets held and administered and serves over 90% of Fortune 100 companies. According to DefiLlama, USDC is the world’s second-largest stablecoin by market capitalization, with over $73.8 billion in circulation data.
In May, BNY partnered with Abu Dhabi-based Finstreet and the ADI Foundation to develop institutional custody services for Bitcoin (BTC) and Ether (ETH), with plans to later support stablecoins and tokenized real-world assets.
Source: DefiLlama
Related: Breez launches Bitcoin-to-stablecoin payments on over 30 blockchains
Traditional finance is developing stablecoin infrastructure
The BNY announcement is the latest in a series of stablecoin-based products launched by major financial institutions in recent months as established banks and asset managers expand services to support reserve management, custody and blockchain-based payments.
In May, JPMorgan filed to launch a tokenized money market fund that would allow stablecoin issuers to hold reserve assets in a regulated investment vehicle while earning interest. The Ethereum-based fund is designed to invest in U.S. Treasury bills and overnight repurchase agreements that back stablecoin payments.
Earlier this month, State Street launched a government money market fund for stablecoin issuers, offering a vehicle to hold reserve assets in compliance with the GENIUS Act. The fund invests in U.S. government securities and repurchase agreements, and counts State Street Bank and Anchorage Digital among its early investors.
Other major financial institutions are also pursuing stablecoin strategies. In July 2025, Bank of America said it was exploring stablecoins to modernize its payments infrastructure, while in January, Fidelity Investments launched a U.S. dollar-backed stablecoin (FIDD) after receiving conditional approval to operate a domestic custodian bank.
According to DefiLlama, the stablecoin market is valued at approximately $313 billion, with Tether’s USDT accounting for approximately 60% of the market.
Source: DefiLlama
