BNY unlocks USDC minting for institutions as stablecoin market hits $313 billion

Wall Street's largest custody bank is opening its platform to stablecoin minting and redemption, pushing digital assets deeper into mainstream finance.

BNY, the world's largest custody bank overseeing $59 trillion in assets, will let institutional clients mint, redeem and custody Circle's USDC through its Digital Asset Custody platform, the bank said Monday.

"As digital assets become increasingly integrated into financial markets, institutions need infrastructure that works across traditional and blockchain-based systems," Carolyn Weinberg, chief product and innovation officer at BNY, said.

USDC is the first stablecoin supported on the platform, with BNY planning to add additional issuers over time. The bank already serves as primary custodian of the reserves backing the stablecoin. The new service lets institutions manage cash and digital assets through a single interface, converting dollars into USDC or redeeming USDC back into dollars directly through the bank.

The announcement follows the 2025 passage of the GENIUS Act, the U.S. law establishing a federal framework for dollar-backed stablecoins. Standard Chartered projects the stablecoin market could expand from roughly $300 billion today to $2 trillion by the end of 2028, while Citigroup estimates it could reach $4 trillion by 2030.

Wall Street's Stablecoin Push

BNY's move is the latest in a wave of stablecoin-focused products from major financial institutions. In May, JPMorgan filed to launch a tokenized money market fund allowing stablecoin issuers to hold reserve assets in a regulated investment vehicle. Earlier this month, State Street launched a government money market fund for stablecoin issuers designed to comply with the GENIUS Act's reserve requirements. Bank of America said in July 2025 it was exploring stablecoins to modernize its payments infrastructure, and Fidelity launched its own dollar-backed stablecoin, FIDD, in January after receiving conditional approval to operate a national trust bank.

USDC's Competitive Position

Circle's USDC is the second-largest stablecoin with a market capitalization of more than $73 billion, according to DefiLlama. Tether's USDT dominates the market with about 60% of the total $313 billion stablecoin supply. BNY's endorsement of USDC as the first stablecoin on its platform strengthens Circle's position against Tether, particularly among institutional clients that require regulated banking infrastructure.

For institutional investors, the ability to mint and redeem stablecoins through a regulated custody bank removes one of the last operational barriers to allocating capital to digital assets. With the GENIUS Act providing a clear legal framework and the largest custody bank now offering stablecoin services, the infrastructure gap between traditional finance and crypto is narrowing rapidly.

This article is for informational purposes only and does not constitute investment advice.