BNY has launched enhanced stablecoin services allowing institutional clients to store and manage USDC.
It comes as traditional financial institutions continue to use new technologies to streamline global payment and settlement infrastructures.
Carolyn Weinberg, the chief product and innovation officer at BNY, explained that institutional clients are demanding seamless infrastructure capable of operating efficiently across both traditional and blockchain-based networks.
“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,” she said.
The new capabilities allow clients to hold the stablecoin within digital asset custody wallets, while providing direct functionality to mint and burn the asset against traditional US dollars.
This expands the American banking giant’s existing role as the primary custodian of the reserves backing Circle’s digital currency. Over time, the firm intends to expand these digital cash workflows to support additional stablecoin issuers.
Kash Razzaghi, chief commercial officer at Circle, added that the collaboration reflected the strict regulatory rigor built into the digital asset from its inception.
The expansion comes amid significant growth in the global digital asset market, where institutional demand for regulated dollar-backed stablecoins has risen sharply.
BNY has consistently focused on modernising its clearing and settlement frameworks in recent years.
Market analysts note that integrating minting capabilities directly into traditional custody models helps institutions bypass fragmented third-party bridges, significantly reducing counterparty risk.
