BNY Accelerates Stablecoin Push via Expanded Circle Relationship

BNY’s institutional clients can now hold USDC stablecoins in digital asset custody wallets at the bank and instruct the stablecoin’s issuer, Circle Internet Group, through BNY, to convert U.S. dollars into USDC and to redeem USDC for U.S. dollars.

These new stablecoin enablement capabilities for institutional clients result from an expanded relationship between BNY and Circle, BNY said in a Monday (June 29) press release.

With this expansion, USDC has become the first stablecoin on BNY’s Digital Asset Custody program, which supports the full lifecycle of institutional stablecoin activity and links fiat and digital asset custody services within one institutional framework, according to the release.

BNY plans to expand this program to support additional stablecoin issuers and digital cash workflows, per the release.

Carolyn Weinberg, chief product and innovation officer at BNY, said in the release that this offering meets needs created by the growing integration of digital assets into financial markets.

“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,” Weinberg said.

Circle Chief Commercial Officer Kash Razzaghi said in the release: “This is the next chapter in a longstanding relationship that now gives BNY clients connectivity between on-chain and traditional assets, within the infrastructure they already trust.”

Circle said in April 2022 that it selected BNY as custodian for its reserves, which amounted to $52 billion at the time. The companies said at the time in a press release that the relationship would provide a bridge between traditional and digital markets.

It was reported in March 2025 that BNY was handling additional services for Circle, including allowing some of the bank’s clients to send money to and from the stablecoin company to buy or sell Circle’s stablecoins.

BNY said in July 2025 that it had been chosen by blockchain company Ripple to provide the primary custody of Ripple’s stablecoin reserves. The companies said at the time in a press release that they were committed to paving the way for digital asset adoption at institutional scale and bridging gap between traditional finance and crypto ecosystems.