BNY Mellon has announced a significant expansion of its digital asset custody program, allowing institutional clients to hold USDC stablecoins in secure digital wallets. Clients can now interact directly with Circle Internet Group, the issuer of USDC, to convert U.S. dollars into this stablecoin and vice versa.
This enhancement stems from a deepening of the collaboration between BNY and Circle, marking USDC as the first stablecoin integrated into BNY’s Digital Asset Custody program. The initiative is designed to manage the full lifecycle of institutional stablecoin operations, combining both fiat and digital asset custody services within a single, cohesive institutional framework.
According to Carolyn Weinberg, chief product and innovation officer at BNY, the introduction of these stablecoin capabilities addresses the evolving demands of the financial market as it increasingly incorporates digital assets. “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 stated.
Circle’s Chief Commercial Officer, Kash Razzaghi, emphasized the importance of the partnership, stating that it allows BNY clients to connect their on-chain and traditional assets seamlessly, utilizing the trusted infrastructure already in place. This relationship began to take form in April 2022, when Circle selected BNY as the custodian for its reserves, which were valued at $52 billion at the time. The partnership aimed to serve as a bridge between traditional financial systems and digital markets.
In March 2025, reports indicated that BNY was broadening its services for Circle, enabling clients to transfer funds to and from the stablecoin issuer to facilitate the buying and selling of USDC. Additionally, in July 2025, BNY announced it had been chosen by blockchain company Ripple to serve as the primary custodian for Ripple’s stablecoin reserves. This collaboration reflects both companies’ commitment to promoting institutional-scale digital asset adoption and bridging the divide between traditional finance and the cryptocurrency ecosystem.
