BNY Mellon Adds USDC Minting and Redemption to Custody Platform

New USDC Services Live

BNY Mellon has rolled out USDC minting, redemption, custody, and transfer capabilities on its Digital Asset Custody platform. The update allows institutional clients to convert U.S. dollars into USDC and redeem USDC back to dollars directly through BNY, removing the need for clients to route transactions through third-party exchanges or crypto platforms.

Custody Platform Expansion

The addition of USDC joins BNY's existing digital asset custody offerings and reflects growing demand from institutions for native stablecoin infrastructure. By hosting minting and redemption directly on its platform, BNY positions itself as a single on-ramp for institutional capital seeking exposure to USDC without intermediaries. Clients retain custody of their holdings within BNY's infrastructure.

Market Context

USTC, the USD Coin issued by Circle, is the second-largest dollar-denominated stablecoin by market cap after USDT. Institutional adoption of stablecoins has accelerated over the past 18 months, with major banks and custody providers adding similar services. BNY Mellon's move aligns with the broader trend of traditional finance entering stablecoin infrastructure at the custody and settlement layer.

Why It Matters

For Traders

Direct USDC minting through BNY reduces friction for large institutional orders and may stabilize USDC-USD basis spreads on centralized venues.

For Investors

Bank-level custody and native on-ramp legitimize stablecoins for institutional deployment and signal sustained TradFi confidence in USDC adoption.

For Builders

USDC's integration into legacy custody infrastructure expands its utility as a settlement layer for protocols and apps targeting institutional users.