BNY Mellon Enables USDC Minting, Redemption on Custody Platform

BNY Mellon expanded its Digital Asset Custody platform to allow institutional clients to mint, redeem, store and transfer Circle’s USD Coin (USDC). USDC is the first stablecoin supported for minting and redemption on the bank’s custody service.

Clients can convert U.S. dollars into USDC and redeem USDC back into dollars directly through BNY Mellon while keeping custody of the tokens on the bank’s platform. Clients will be able to store USDC on the custody system and execute transfers on supported blockchains under the bank’s custody controls and infrastructure.

BNY Mellon manages $59.3 trillion in assets under custody and administration and provides services to more than 90% of Fortune 100 companies. USDC is the world’s second-largest stablecoin by market capitalization, with more than $73.8 billion in circulation. The stablecoin market is roughly $313 billion, with one competitor holding about 60% of that market.

The bank serves as the primary custodian of the assets backing USDC. The new capabilities extend that relationship by enabling client-facing minting and redemption services, and BNY Mellon intends to add support for additional stablecoins and digital cash workflows over time.

In May, BNY Mellon formed a partnership with Abu Dhabi-based Finstreet and the ADI Foundation to develop institutional custody services for Bitcoin and Ether, with plans to add stablecoins and tokenized real-world assets later. The USDC functionality follows that work and expands the bank’s digital asset offerings for clients.

Several large financial firms have recently pursued products tied to stablecoin reserve management. One bank filed to launch a tokenized money market fund designed for stablecoin reserve assets; another launched a government money market fund for stablecoin issuers. Other institutions are exploring or issuing dollar-backed stablecoins and related infrastructure.

BNY Mellon described the service as part of an effort to expand digital cash and tokenized asset services for institutional clients while keeping reserve custody and transfer functions inside the bank’s platform.