Circle has extended its 2026 USDC expansion push after BNY made the stablecoin the first asset supported on its Digital Asset Custody platform.
The June 29, 2026 announcement deepens an existing relationship between the two companies and gives institutional clients access to USDC custody, transfers, minting, and redemption through BNY’s digital asset infrastructure.
The announcement placed USDC at the center of BNY’s stablecoin custody rollout for institutions.
BNY Adds USDC To Custody Platform
BNY said institutional clients will be able to hold and transfer USDC from digital asset custody wallets.
They can also instruct Circle to mint new tokens against dollar deposits or redeem existing tokens back into U.S. dollars.
The service creates one access point for clients converting fiat dollars into USDC, or burning the stablecoin back into fiat.
The arrangement places BNY as a key operating hub for Circle’s stablecoin within traditional finance.
Circle chief executive Jeremy Allaire described the agreement as “a big milestone in the convergence of digital dollars with the global financial system.” He also wrote on X that BNY is now “a primary liquidity and custody hub for USDC.”
Circle Relationship Extends Reserve Custody Role
The agreement builds on BNY’s existing role as primary custodian for reserve assets backing USDC.
That relationship already connected the bank to Circle’s stablecoin infrastructure before the latest custody service was announced.
BNY’s latest offering differs from its tokenized deposit service launched earlier in 2026, where Circle was among the initial participants.
That service placed on-chain representations of bank deposits on BNY’s private blockchain and targeted collateral and margin workflows.
The USDC custody service instead supports an existing third-party stablecoin issued by Circle.
Carolyn Weinberg, BNY’s Chief Product and Innovation Officer, said, “As digital assets become increasingly integrated into financial markets, institutions need infrastructure that seamlessly works across traditional and blockchain-based systems.”
USDC Leads BNY Stablecoin Rollout
BNY said it selected USDC first because of Circle’s regulatory standards. Kash Razzaghi, Circle’s chief commercial officer, said, “Making USDC the first stablecoin included in their new offering reflects the regulatory rigor Circle has built into USDC from day one.”
The bank said it plans to support other stablecoin issuers over time after launching with USDC. The move also follows BNY’s May expansion of its digital asset custody footprint into the UAE through partnerships with Finstreet and the ADI Foundation in Abu Dhabi Global Market.
Circle has continued building institutional channels for USDC in 2026. In late June, Circle and Nomura disclosed plans for a corporate USDC settlement service for Japanese businesses by 2027.
USDC remains the second-largest stablecoin, with a market capitalization of about $73.7 billion, behind Tether’s USDT at $186 billion.
