BNY adds mint and burn to USDC custody for institutional clients

BNY has integrated Circle USDC as the first stablecoin on its Digital Asset Custody platform, allowing institutional clients to hold, transfer, mint, and burn USDC within the same custody wrapper. Clients can now instruct Circle via BNY to convert US dollars into USDC or redeem USDC for dollars, linking fiat and digital asset custody under a single operating model. The bank already serves as primary custodian of USDC reserves and plans to extend the service to additional stablecoin issuers over time.

The offering collapses what has typically been a multi-leg workflow (moving cash to an exchange or issuer, minting on-chain, then transferring to custody)into a single instruction flow. For treasury desks and collateral managers accustomed to BNY’s infrastructure, that removes operational seams and counterparty hops. The move signals that a Tier 1 custodian now treats programmatic stablecoin issuance and redemption as table stakes for institutional digital asset services, not an exotic add-on.